Nikkei Lower after BOJ-Inspired Rally

Japanese stocks stepped back on Wednesday morning as heavyweight Softbank tumbled after slashing its profit forecast, while the broader market took a breather after outsized gains inspired by a fresh stimulus drive by the Bank of Japan.

The Nikkei benchmark soared 7.5 percent in the last two trading days, sending the index to its highest point since before the collapse of Lehman Brothers.

Tuesday also saw the second highest turnover of shares on record, as investors cheered the BOJ’s policy announcement on Friday, as well as the Government Pension Investment Fund’s decision to increase its allocation of funds to domestic stocks.

Reuters

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