These reports are clear evidence that the consumer caution that drove the slowing in the economy in the second half of 2005 is on the wane.

Consumers are always concerned about the economy but the key is whether they are predisposed to increasing caution when it comes to spending. I think today's report demonstrates that the hurricanes had an ambiguous affect on spending.

When we look at the economic fundamentals in Japan, and how they've unfolded in the last six months, we're clearly seeing an economy that is growing above potential.

It's unambiguously good news for Japan. It signals the dark days of deflation are behind us.

When we look at investment, it appears to be structurally too low. The political tension will hold down the Taiwan dollar too.

Progressively, the skill set of the population is growing.