Japan wanders into bear territory as Nikkei plunges

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Japan's key Nikkei 225 index endured further sharp losses on Thursday, entering a bear market as investors sold Japanese shares ahead of an expected tapering of QE by the US Federal Reserve.

The index dropped 6.35%, or 843 points, to 12,445 to hit its lowest closing level since 3 April, the day before the Bank of Japan unleashed aggressive stimulus measures to boost economic growth. The Nikkei has fallen 22% since its five and a half year high seen in May, taking it into bear market territory. Traders are selling down equities and continuing on expectations Fed chairman Ben Bernanke will soon begin putting the brakes on the US' quantitative easing programme as the economy recovers. This forecast has seen the yen strengthen against the dollar in the last couple of weeks...

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