bank of japan

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.

Japanese shares have clawed back some of their losses after falling more than 7% yesterday in a dramatic trading session.

The Japanese economy grew faster than any other G7 country in the first quarter of the year, reflecting the benefit of Prime Minister Shinzo Abe's expansionary policies.

Japan's benchmark index has broken through the 15,000 barrier for the first time since 2008 as investors continue to cheer policymakers' efforts to weaken the yen.

Hugh Hendry has backed Japanese equities to continue their stellar start to 2013, but is also boosting exposure to sovereign bonds on concerns Japan's recovery will have harmful effects elsewhere.

Japan's main equity market surged to a five-year high on the first day of trading after the country's Golden Week public holiday.

Japanese equity managers are betting on the domestic consumption theme following the Bank of Japan's aggressive move earlier this month to avert deflation and stimulate the flagging economy.

Bond managers have added to risk assets, while shorts on the yen hit a five-year high after the Bank of Japan (BoJ) announced radical monetary easing measures.

The Bank of Japan's announcement of aggressive growth stimulus measures on Thursday pushed up the flagging Nikkei and caused the yen to fall sharply against the US dollar.

Japanese shares have slumped in this morning's trading as equity markets struggle to consolidate gains seen in the first quarter of 2013.