Tokyo stocks have rallied to their highest levels in more than four years on an accelerated slide in both the yen and government bond yields triggered by the Bank of Japan's aggressive monetary easing measures to prop up the economy.
Market players are now shifting their attention from the currency and debt markets to see whether the government can match its words with actions to achieve tangible economic growth and dispel concerns about an asset-price bubble.
By early April, the dollar, which traded at ¥93 a month ago, had risen to as high as the upper ¥99 range, while the yield on the 10-year Japanese government bond carrying a 0.6 percent coupon had fallen to around 0.5 percent after briefly diving to 0.315 percent, the lowest on record. These developments came after the credit-easing steps decided by the bank on April 4 took the market by surprise.