The past eight months have been tough for holders of Japanese equities. They have seen the Nikkei 225 lose 30 per cent in that time – and although some of the fall can be attributed to the impact on investor sentiment of the subprime crisis in the US, investors have had to endure some home-grown problems.

Among these is the question of corporate governance. The issue has been weighing on the popularity of the market with foreign investors, as some companies have moved to defend themselves against unwanted suitors by adopting poison-pill measures and building up their cross-shareholdings.