The Tokyo stock market staged a strong rebound earlier last week, reacting positively to the Bank of Japan's decision to further ease its grip on credit.
At its policy-setting board meeting Tuesday, the BOJ decided to raise the target for commercial banks' reserves in its current accounts from 5 trillion yen to 6 trillion yen. The move is aimed at providing interbank lending markets with practically interest-free money, thereby discouraging the economy from sliding into a deflationary spiral.
But stocks have subsequently resumed their weak trends.