"The reforms passed by Koizumi are being widely blamed for creating economic and social disparities in Japan," he added.
Robert Feldman, Morgan Stanley's chief economist for Japan, believes that Abe's philosophy is quite similar to that of Koizumi.
"Investors can be cautiously optimistic that Koizumi's reform policies will continue, and that bureaucratic guerrilla resistance will fail," he said.
Less clear, he added, is whether relations with China would improve if Abe succeeds Koizumi, who has irked Asian neighbors with his regular trips to a controversial war shrine and his more assertive foreign policy.
"Abe appeals for a separation of economic and political issues with China. It remains unclear whether China will accept Abe's appeal," Feldman said.
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