Japan's benchmark Topix index has closed at its highest level since 2008 as a stronger US dollar sends the yen on a downwards path once again.
The bears are "sharpening their knives" for Japan despite encouraging signs in the longer term, the managers of the Ruffer investment trust have warned.
Markets across the globe were mixed overnight as investors reacted to a series of stimulus measures introduced in Europe to stave off the downturn.
Shorting the Japanese yen while going long equities was a consensus trade last year. The pair have decoupled, but can the trade work again? Tilney Bestinvest's Sophie Muller investigates.
Asian markets enjoyed a mixed trading session at the start of the week, oscillating between gains and losses as the latest relief rally comes under pressure.
It should be plain sailing for investors in shares this summer. The world economy is growing this year, and should do so again next year at a reasonable pace.
Japan's GDP shrunk by 6.8% on an annualised basis in the second quarter following a hike in the country's sales tax.
The new JPX-Nikkei 400 index launched in January as part of a package of measures aimed at increasing the value of Japanese financial assets. But can it help maintain the revival in the region? Annabelle Williams reports.