Japanese stocks recovered from overnight lows to inch down just 0.21 per cent by the close. Investors were hoping for fresh steps from the Bank of Japan to calm fears about the withdrawal of US monetary easing.
Takeo Okuhara, fund manager at Daiwa SB Investments:
Market reactions of late underscore the liquidity risk -- bond buying schemes are reducing liquidity in bond markets and overshooting prices. Markets have long been too complacent with central bank support.