Nikkei falls after Abe speech

<p>The Nikkei dropped to a new two-month low.</p>

The Nikkei lost almost four per cent of its value today (June 5th) after investors responded negatively to a speech by the Japanese prime minister Shinzo Abe.

A 'third arrow' of monetary policy was confirmed by the country's leader, but some commentators stated he did not go into enough detail about his plans.

The Nikkei slid back to its lowest point in the last two months just a fortnight after it recorded its highest level in five-and-a-half years.

Stan Shamu, market strategist at IG, said in a note: "The comments made by Abe today were not really a game changer and disappointed a market which seems to have been positioned for a USD/JPY and Nikkei rally."

Though the Nikkei responded negatively to the comments made by Mr Abe in his speech, the yen did nudge up against the dollar on the back of it.

Today's losses on the index are in sharp contrast to yesterday's performance, when a two per cent rise was recorded.

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