Japanese shares tumble 4% as QE fears haunt markets

Asian markets racked up further losses overnight as investors continued to fret over the prospect of the Federal Reserve reining in its aggressive quantitative easing programme.

Japan's benchmark index - the Nikkei - ended the day down 3.83% or 500 points, at 13,014, its lowest level since early April. Other Asian markets also suffered overnight, with the MSCI index of Asia-Pacific shares excluding Japan, hitting a six month low after giving up 1%. Sentiment continues to deteriorate despite a rallying call from Japanese Prime Minister Shinzo Abe, who pledged to boost incomes by 3% to stave off the country's decade long battle with deflation. At the start of the speech Japanese shares were in positive trading, up by over a 1%, but by the end fell into negat...