Japan

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

A spike in Japanese government bond volatility has raised concerns that the unintended consequences of new policy measures could further derail the equity market rally.

The FTSE 100's long-running rally has been brought to a dramatic close this morning, with the index shedding 133 points in early trading as fears over an end to the US quantitative easing programme spook investors.

Psigma has dodged today's Japanese equity sell-off after the firm's CIO Tom Becket told its investment managers to reduce exposure earlier this week amid fears a pullback was imminent.

Japan's Nikkei 225 index has closed down 7.3% as comments from Federal Reserve chairman Ben Bernanke over a potential scaling back of quantitative easing spooked investors worldwide.

The incoming governor of the Bank of England (BoE) has warned Europe must change tack and introduce significant reforms to avoid a Japanese-style lost decade.

The Japanese market has gone from strength to strength this year, with shares soaring as the recent expansionary policies of new Prime Minister Shinzo Abe power the economy. But which funds offer investors the best way to play the ongoing rally?

JAPAN

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.