Although the Tokyo stock market is still in a bit of a corrective phase, a solid rebound appears to be in the offing.

Key downside factors in recent weeks were the volatility in U.S. stock markets and seasonal selloffs by Japanese companies ahead of the end of the fiscal year.

With the intricate web of cross-shareholdings unraveling, a broad array of stocks came under severe selling pressure, taking the benchmark Nikkei average below the 12,000 level on March 13 for the first time in more than 16 years.