*Amari says the government is monitoring market movements
The Nikkei 225 has slid by 5.15 per cent in trading today, falling by around seven per cent in total this week. This puts the Japanese index on course for its biggest weekly wall since March 2011.
However, this has only taken the Nikkei back to levels it first reached about a month ago.
Japan's economics minister Akira Amari has said that the impact of Abenomics is being felt in the real economy, and that monetary easing has been highly praised. Amari said that the Bank of Japan will deal with rising yields appropriately and that the government is monitoring market movements.
Greater losses were seen in the Tokyo's TOPIX index, falling by 3.77 per cent over the day. So far Japanese stocks have been supported by a weak yen, but this has strengthened against the dollar in the past couple of weeks.
Société Générale's Kit Juckes:
The Nikkei has wiped out May's gains. Unless USD/JPY collapses a couple more percentage points, we're still in for an unprecedented 8th consecutive month/month gain, but yesterday's price action in yen and Swiss franc was ugly (for a bear of both). And the Japanese sales of foreign bonds are persistent enough to force head-scratching now...
Japan PM Econ Adviser Hamada: 10%-20% Random Stock Moves Not Surprising [dj]>> speak for yourself, mate— Katie Martin (@katie_martin_FX) May 30, 2013