While the Tokyo stock market awaits signs of the government's resolve to fix the nation's financial woes, macroeconomic environments surrounding the market are gradually showing improvement.

The corporate sector continues to show dismal figures, but October-December gross domestic product data, to be released in March, may confirm strong consumer spending as demonstrated in the robust sales of some luxury goods.

The market may be encouraged by the favorable effects of the weak yen and the growing trend toward business consolidation. Nevertheless, firms should consider effective consolidation means other than carrying out mergers on an equal footing, a practice usually adopted when operations are integrated.

Last year's revision of the Commercial Code has enabled companies to enjoy greater benefits by spinning off their operations, allowing them to restructure operations through "selection and concentration."

Although share buybacks are available to companies that consider their stock prices unfairly low, few of them resort to the practice. Shares bought back do not need to be retired immediately and can be kept as treasury stock for future use, including share swaps to carry out mergers and acquisitions.

As long as stock prices are taken to reflect a firm's value, there remain many ways to increase their worth.