Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

The Huge Japanese Rally Has Run Into A Brick Wall

Joe WeisenthalMar 28, 2013, 13:55 IST

viZZZual.comSince last October, basically, the Japanese stock market has been insanely hot.

Thanks to the new government, and the expectation of a lot more easing (both monetary and fiscal) the Nikkei has been on fire, with 2% up days a common sight.

But over the last couple of weeks, things have run into a bit of a brick wall.

The yen has stopped weakening, and stocks have stopped gaining.

On Thursday, stocks fell 1.2%.

Particularly hard hit was the REIT index, which fell over 3%.

This is all despite the usual jaw-boning and headlines out of the Bank of Japan about trying to hit aggressive inflation targets and so on. Clearly the effectiveness of that as a market-moving device has faded. Now time to put it all into action.