Nikkei enters bear market

The Nikkei endured further sharp losses on Thursday, entering a bear market as investors sold Japanese shares ahead of an expected tapering of QE by the US Federal Reserve.

The index dropped 6.35% or 843 points to 12,445 to hit its lowest closing level since 3 April, the day before the Bank of Japan unleashed aggressive stimulus measures to boost economic growth. Traders are selling down equities and continuing on expectations Fed chairman Ben Bernanke will soon begin putting the brakes on the US' quantitative easing programme as the economy recovers. This forecast has seen the yen strengthen against the dollar in the last couple of weeks, after it depreciated since the BoJ stimulus was unveiled, leading many investors to short the currency. The yen f...