World markets are monitoring the approach of the new Japanese finance minister, Mr Kiichi Miyazawa, with mixed feelings. His comments last week that he did not intend to prop up the yen weakened that currency, boosting the ailing economy's exports but threatening also to weaken other currencies in the region including the Chinese yuan.

But the end of the traditional system of supporting the weaker Japanese banks signals the advent of a healthier financial sector and renewed investor confidence in the economy which is benefiting from an extra $70 billion in Government expenditure.