japan benefits from succes of its neighbors.

Japan and Australia have goodies to sell and neighbors keen to buy.

Both countries benefit from being in the region that has became the economic engine of the world.

While the EU is struggling, with its economy in duress, partially self inflicted due to ill thought out rules on GDP and Euro and US overwhelmed by expensive war, high unemployment, enormous deficit and astronomical government debt, Asia is powering ahead.

Australia is an early beneficiary from this Asian boom, from the increased exports of minerals, iron ore, coal and gas (LPG now and LNG in future).

http://www.theaustralian.com.au/business/rapid-acceleration-of-asian-investment-in-australia/story-e6frg8zx-1225889978913

Japan is benefiting from increased demand for its manufactured high quality high tech goods and likely to benefit a lot more from increasing Asian prosperity in future.

China has become a banker to the world and is increasingly investing its surpluses and foreign exchange reserves away from USA. It looked at Europe but in view of the current difficulties it has now focused on Asia.

quote from article from Business Spectator on latest Chinese FX reserve management: "China bought record amounts of Japanese government bonds in the first four months of the year."

http://www.businessspectator.com.au/bs.nsf/Article/china-us-yuan-treasuries-debt-dollars-pd20100708-75SWG?OpenDocument

So Japanese companies by and large are on strong financial footings and China is helping with the large Japanese sovereign debt, the way out of the woods is clear for Japan IMO.

Increasing Asian prosperity should benefit Japanese economy for years to come. Increased profits and possibly higher employment should result in higher government revenue and reduce the debt to GDP ratio from both ends.
Higher GDP means lower ratio and higher revenue means some of this debt can be paid of as needed.

Lucky country Australia will benefit by supplying the energy and raw materials needed by Asia in its effort to boost their economies and living standards of their population. Our farms can supply staples and luxuries for their table.

Important part of this rosy future is to ensure that the good part of this new wealth goes to public at large, not just few multinational companies.
This is where Japan went wrong in past. The profits from booming economy of seventies and eighties did not go to general population, it went to capital. Large part went to US as investment in US bonds and treasuries, thus financing the extravagant US credit card lifestyles. US lived well above its means, while Japanese population, probably due to its frugal nature got comparatively little from Japanese economic miracle.

Hopefully the Asian countries including Australia benefiting from Asian boom will heed the lessons of the past and let the general population enjoy the spoils of the boom, not squander it on real estate bubbles and speculation that benefit nobody.