They say given the links between the Japanese economy and the rest of Asia, a stimulus package for the region, via foreign capital inflows, could re-ignite the demand needed to kickstart Japan's industries.

"Fiscal stimulus in the rest of Asia could drive growth in Japan," said Steve Taran, global head of sovereign risk research at SalomonSmithBarney in Hong Kong.

Taran believes further Japanese fiscal stimulus, such as tax cuts, may have little impact on the domestic economy because, at a time of high unemployment, the Japanese are likely to simply save the extra money rather than spend it.

Meanwhile structural reforms, such as opening up the Japanese economy to more foreign competition and repairing the health of the banking sector,while still necessary, could take many years.

"In the meantime there would be no growth," Taran said.

But if the Japanese, along with other official lenders, put money into the rest of Asia, a multiplier effect would ultimately mean a greater demand for Japan's goods and services.