Japanese Prime Minister Junichiro Koizumi confirmed his reform plans in a much-awaited speech in Tokyo, reports say. He outlined a two-step fiscal reform program, confirming that he plans to cap new debt at Y30 trillion in the next financial year with further limits to JGB issuance. He reportedly noted there would be no recovery without fiscal reform and warned that recovery may require a measure of pain. He also outlined a cut in capital gains tax to lure investors back to the stock market and confirmed his intention to privatise the Japanese postal system. His comments were broadly in line with expectations, having little market impact other than giving a slight lift to the Nikkei.