Japan

This is a big change for Japan as the country's post-World War II constitution limits it to nominally self-defensive capabilities. The new strategy is set ...

“In order to accomplish the aim of the preceding paragraph, land, sea and air forces, as well as other war potential, will never be maintained. [Latest News](https://www.firstpost.com/), [Trending News](https://www.firstpost.com/author/trendingdesk), [Cricket News](https://www.firstpost.com/firstcricket/), [Bollywood News](https://www.firstpost.com/entertainment/bollywood), [India News](https://www.firstpost.com/category/india) and [Entertainment News](https://www.firstpost.com/category/entertainment) here. “We will fundamentally reinforce defence capabilities as the last guarantee of national security.” This is a big change for Japan as the country's post-World War II constitution limits it to nominally self-defensive capabilities. Yet](https://www.firstpost.com/explainers/explained-is-winter-coming-why-delhi-is-not-shivering-this-december-11800531.html) Follow us on [also read] [Explainers](https://www.firstpost.com/category/explainers) [Is winter coming? The strategy contained in the documents represents a major evolution of Japan’s military posture, according to Chris Hughes, professor of international politics and Japanese studies at the University of Warwick. Core army troops in the southwestern islands will be doubled, and logistics strengthened “to enable the rapid deployment of troops from all over Japan” in an emergency, The biggest change in the National Security Strategy is possession of “counterstrike capability” that Japan calls “indispensable.” “Russia’s invasion of Ukraine is a serious violation of laws that forbid the use of force and has shaken the foundations of the international order,” the strategy paper said. The changes, spelled out in in three defence and security documents approved by the cabinet on Friday, describes Beijing as “the greatest strategic challenge ever to securing the peace and stability of Japan”, as well as a “serious concern” for Japan and the international community. “Japan’s security environment is as severe and complex as it has ever been since the end of [the second world war],” the documents said as per Financial Times.

Analysts also warned that, rather than boosting its military build-up, the Japanese government should focus on resolving internal unrest as Prime Minister Fumio ...

Its current major shift on its security policy also raised questions on whether it is deviating from the peaceful path. South Korea is expressing concerns over Japan's desire for "counterstrike capabilities" and its renewed claim over the Dokdo islets, called Takeshima by Japan. This is also why the US has praised Japan's new security approach. The expert noted that Japan has now signed reciprocal access agreements with Australia and the UK, which have become de facto military alliances. The public in Japan is dissatisfied with the Kishida over ties between several cabinet members and the controversial Unification Church. They also oppose the increase in the military spending budget.

After Germany, Japan becomes the second country to overhaul its military in the backdrop of the Russia-Ukraine war and increasing Chinese belligerence.

In fact, Japan becomes the second country after Germany to give up its post-WW II stance on being a military power, in the backdrop of the Russia-Ukraine war. US sees China as "the only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to advance that objective". China has said said that hyping up the threat posed by Beijing to back its military build-up "is doomed to fail." In toto, Japan's armed forces will fast become much more formidable in the near future. In addition, Japan will acquire new capabilities, such as long-range missiles that can strike enemy missiles on the launchpad, and it will invest in future high-tech capabilities in realms such as cyber and space. Chinese Foreign Ministry Spokesperson Wang Wenbin has said that Japan's new defence policy ignores facts, deviates from its commitment to China-Japan relations and the common understandings between the two countries, and groundlessly discredits China's defence building and normal military activities.

Japan will double its defense budget in five years, prompted largely by North Korean missile tests and China's aggression in the Indo-Pacific.

A Chinese attack on Taiwan might be what it takes to trigger revision of the article. Throw in orders of [Osprey](https://www.boeing.com/defense/v-22-osprey/) helicopters, the kind that fly like a propeller-driven plane but take off and land vertically, add any number of drones, include satellite technology, and pretty soon the Japanese will have what may be the world’s most sophisticated military force after the U.S. bombers on the southern Japanese island prefecture of Okinawa or on ships based at Yokosuka, south of Tokyo. The nuclear issue is an element not covered in the fast-rising defense budget — at least, not yet. They are working furiously to develop their own intercontinental ballistic missiles capable of reaching targets deep in the Eurasian landmass, including all of China and much of Russia. Much of the spurt in investment presumably covers research and development. The term “Self-Defense Forces” was adopted nearly 70 years ago to cover Japan’s rebirth as a military power. That’s the level under which Japan has long held military spending, to 1 percent of its [gross national product](https://tradingeconomics.com/japan/gdp#:~:text=GDP%20in%20Japan%20is%20expected,according%20to%20our%20econometric%20models.), the world’s third largest after the U.S. Scores of North Korean missile tests this year, and China’s reluctance to rein in its North Korean protectorate, are reasons for the abrupt shift in policy on defense spending. A Tomahawk has a range of 1,000 miles, enough to hit targets anywhere in North Korea and much of northeastern China. [F35 fighters](https://www.lockheedmartin.com/en-us/products/f-35.html) at $100 million a plane, probably the biggest-ticket item. [double](https://www.bbc.com/news/world-asia-64001554) its defense budget in five years and break the 1 percent barrier.

Selloff pressure also fueled amid renewed speculation that the Bank of Japan (BoJ) could tighten its ultra-loose monetary policy.

CURRENCY NEWS: The Japanese yen stood at 135.84 against US dollar in Asian trade on Monday, appreciated 0.63% from Friday's close of 136.69, after trading in the range between 135.76-136.61. [ Business Standard App ](/app) for latest [Business News](/) and [ Market News ](/markets). (This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

यह बात है दूसरे विश्व युद्ध की, जब जापान कोलकाता पर बमबारी कर रहा था, 1942 से 1944 के बीच ...

Japan released on Friday a new, robust national security strategy and complementary defense planning documents. The strategy is Japan's first in nearly 10 ...

[last updated in 2018](https://warp.da.ndl.go.jp/info:ndljp/pid/11591426/www.mod.go.jp/j/approach/agenda/guideline/2019/pdf/20181218_e.pdf). Alliance and collaboration with like-minded countries will be enhanced as well,” according to the new [National Defense Strategy](https://www.mod.go.jp/j/approach/agenda/guideline/strategy/pdf/strategy_en.pdf). Although the Biden administration has reaffirmed America’s commitment to its allies in the region, it has made no secret of its continued interest in working with Japan to “ [enhance alliance capabilities](https://www.defense.gov/News/News-Stories/Article/Article/3196800/allies-modernization-at-heart-of-us-japan-efforts-in-indo-pacific/).” The defense capabilities that Japan plans to institute and increase “will further enhance deterrence and response capabilities of the Japan-U.S. [successive record defense budgets in recent years](https://milex.sipri.org/sipri). [these moves reflect militarization](https://apnews.com/article/china-japan-ba727bc6b80fe06278ce43ae9a36e703) and a move away from pacifism for Japan, the focus of these documents is very much on deterrence and its importance in maintaining peace and stability in an already very militarized region. [China](https://www.japantimes.co.jp/news/2022/12/17/national/japan-security-documents-china-us-reaction/) and [North Korea](https://www.pbs.org/newshour/world/north-korea-fires-2-missiles-capable-of-reaching-japan-in-possible-response-to-tokyos-new-security-strategy) reacted to Japan’s documents with displeasure, partners in the region and Europe are likely to welcome the moves. Even neighbor South Korea, with whom Japan has had [tense relations](/events/resolving-tensions-between-south-korea-and-japan) in recent years, [reportedly welcomed counterstrike capability](https://apnews.com/article/business-japan-8d8fe00c6e87914f1dd1ea3388a7f6db) as contributing to regional peace and stability. [called for a system to ensure counterstrikes are responsive and not preemptive](https://www3.nhk.or.jp/nhkworld/en/news/20221130_36/). Today, Japan sees Russia as a dangerous spoiler whose “aggression against Ukraine has easily breached the very foundation of the rules that shape the international order.” In addition to being “the most significant and direct threat to security in the European region,” Russia’s activities around Japan and coordination with China are “of strong security concern.” Counterstrike capability has been controversial in Japan because the weapons it requires can also be used offensively and because it can be difficult to pinpoint when an enemy attack using a missile has technically begun before the missile is actually airborne. [based on various case-specific considerations](https://www.lawfareblog.com/dynamics-japans-armed-attack-initiation-doctrine-and-anticipatory-self-defense). Japan’s long-standing aversion to such a capability has been facilitated by a combination of missile defenses (to shoot down missiles already in flight) and reliance on U.S.

TOKYO — Japan is sounding out major oil refiners about buying Russian ultra light crude from the Sakhalin-2 gas and oil project to ensure that the plant ...

Japan’s trading houses continue to own stakes in the Sakhalin-2 project, which Tokyo says is essential for energy security. The government’s move signals a potential restart of Russian oil imports by Japan for the first time since June. Article content

Japan's budget proposal for the 2023-2024 fiscal year (FY) could be as high as 114 trillion yen, the Nikkei reported, adding that the government could.

The Bank of Japan (BoJ) is the last to decide on monetary policy this Tuesday, December 20. The pair’s latest run-up could be linked to the firmer US Treasury bond yields, as well as, expectations of a BoJ's status-quo. Gold price takes offers to refresh intraday low near $1,785 during early Tuesday, extending the week-start losses amid firmer US Dollar. The author makes no representations as to the accuracy, completeness, or suitability of this information. AUD/USD pays little heed to the RBA latest Monetary Policy Meeting Minutes while holding lower grounds near 0.6700 during early Tuesday. SOL has yet to retest three significant moving averages during this year's downtrend. [Read more](https://www.fxstreet.com/cryptocurrencies/news/solana-price-aims-for-9-as-bears-make-their-presence-known-202212192107) [Bank of Japan Preview: Policymakers can boost the JPY](https://www.fxstreet.com/analysis/bank-of-japan-preview-policymakers-can-boost-the-jpy-202212191409) Premium The author has not received compensation for writing this article, other than from FXStreet. The author will not be held responsible for information that is found at the end of links posted on this page. It also does not guarantee that this information is of a timely nature. That said, the FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.

The net loser in all these developments is China. There was a time when in Japan and Europe, the issue was about managing the bilateral relationship with ...

Secretary of State Antony Blinken has said that “Japan’s new documents reshape the ability of our alliance to promote peace and protect the rules-based order in the Indo-Pacific region and around the world.” Tighter cooperation with the US is an important theme of the documents. The Japanese believe that if Taiwan fell, China could constrict Japan’s key trade routes and increase pressure on the Senkaku islands and enhance its ability to coerce Japan. China worries that Japan is playing a key role in building the Indo-Pacific coalition to resist its rise. Around 54,000 US servicemen are stationed in Japan and the home port of the 7th Fleet is Yokosuka, just south of Tokyo. A major driver of this change is the increasing worry that China could attempt to reunify Taiwan by force in the coming decade. As part of this new strategy, Japan will enhance the range of its own Type 12 missiles and buy US-made Tomahawk missiles with a range of 1,600 km or so over the next five years.

"Japan is bringing a serious security crisis on the Korean Peninsula and in the East Asia region by adopting a new security strategy that effectively ...

"We make it clear once again that we have the right to take bold and decisive military measures to protect our fundamental rights ... Charter and a "serious challenge" to international peace. Register for free to Reuters and know the full story

20 दिसम्बर 1942 को जापान की इंपीरियल आर्मी एयरफोर्स ने कोलकाता पर बम गिराए. आधी रात को हुई ...

जापान चीन की कमर तोड़ने के लिए भारत से उस तक पहुंचने वाली मदद को रोकने की कोशिश में जुटा था, लेकिन उसने बमबारी के लिए रात का समय चुना. जापान की कोलकाता पर की जाने वाली यह बमबारी दुनियाभर में सुर्खियां बनी थीं. इस घटना के बाद शहर के कई हिस्सों में बर्बादी के निशान लम्बे समय तक नजर आए. जब वो घटनाएं नहीं रुकीं तो ब्रिटिश एयरफोर्स ने जापान को जवाब देते हुए कई जापानी फाइटर विमान को निशाना बनाया. 20 दिसम्बर 1942 को जापान की इंपीरियल आर्मी एयरफोर्स ने कोलकाता पर बम गिराए. ब्रिटेन अमेरिका समेत पश्चिमी देशों का गठबंधन वाले देश जापान, जर्मनी जैसे देशों के खिलाफ जंग लड़ रहे थे.

देश-दुनिया के इतिहास में 20 दिसंबर की तारीख तमाम अहम वजह से दर्ज है. इसे इस लिहाज से भी ...

उनसे पहले जुलाई 1956 में इंग्लैंड के जिम लेकर एक इनिंग में 10 विकेट ले चुके थे. कुंबले एक इनिंग के सभी 10 विकेट लेने वाले दुनिया के दूसरे खिलाड़ी थे. 40 साल बाद फरवरी 1999 में अनिल कुंबले ने एक इनिंग में सभी 10 विकेट लेकर जस्सू पटेल का रिकॉर्ड तोड़ा. और 1959 में इसी तारीख को भारत के जस्सू पटेल ने ऑस्ट्रेलिया के खिलाफ 9 विकेट लिए थे. ब्रिटेन भारत की जमीन का इस्तेमाल युद्ध के दौरान अपने सहयोगियों तक मदद पहुंचाने में कर रहा था. 1983 में कपिल देव ने एक इनिंग में 9 विकेट लेकर उनके रिकॉर्ड की बराबरी की. जापान इस सप्लाई चेन को तोड़ना चाहता था. इसे इस लिहाज से भी याद किया जाता है कि इसी तारीख को जापान ने भारत के कलकत्ता (कोलकाता (Kolkata) ) में बम गिराए थे. दरअसल, इस समय जापान से चीन लोहा ले रहा था. इस हमले में जापानी एयरफोर्स ने हावड़ा ब्रिज और बंदरगाह को निशाना बनाया था, जो उस वक्त दुनिया के सबसे बड़े पुल की लिस्ट में तीसरे नंबर पर था. जापान की इंपीरियल आर्मी एयरफोर्स ने कोलकाता (Kolkata) पर बम गिराए. और उसके लिए एक ही रास्ता था, जो भारत से होकर जाता था.

India and Japan is planning joint fighter jets exercises. And there is a possibility that India will import Japan's UNICORN for their naval ships. AP Japan's Prime Minister Fumio ...

But now, Australia and India are a priority for Japan, the documents said. Except for the US, both National Security Strategy and National Defence Strategy clearly listed up Japan’d friends. Furthermore, China is strengthening its strategic ties with Russia and attempting to challenge the international order,” the strategy paper noted. The dynamism of the intersection of the Pacific and the Indian Oceans is a growth engine for the global economy. At the same time, the Indo-Pacific region faces a host of security challenges. “The Indo-Pacific region is the core of global vitality, home to more than half of the world's population.

North Korea has denounced Japan's new security strategy and has vowed action to show just how "wrong" Japan's choice is. The nation also said that ...

and why would we stop?" in response to the complicated regional security environment." The nation also said that international sanctions will not stop its efforts to step up its own security efforts.

Markets in the Asia-Pacific traded mostly lower as the Bank of Japan modified its yield curve control tolerance range while holding its ultra-low benchmark ...

[Hang Seng index](https://www.cnbc.com/quotes/.HSI/) fell 1.61% in its final hour of trade, with technology and property stocks dragging down the wider index. The Dow Jones Industrial Average shed 163.85 points, or 0.50%, to close at 32,756.61. "And it's not just the Fed tightening: ECB, BoE, Mexico, Switzerland, and Norway also tightened last week," he said. dollar after the announcement. [Sumitomo Mitsui Financial Group](/quotes/8316.T-JP/) also rose more than 7% and was last up 5%. That puts in on track for its worst monthly performance since September. It would also be its biggest December decline since 2018, when it slid 9.18%. The [Japanese yen](/quotes/JPY=/) strengthened by around 3% against the U.S. [Mitsubishi UFJ Financial Group](/quotes/8306.T-JP/), or MUFG, rose as much as 9.6% shortly after the announcement and last traded 5.66% higher. [Nikkei 225](/quotes/.N225/) fell 2.46% to 26.568.03 leading losses in the region and the Topix fell 1.54% to 1,905.59. The Bank of Japan held its benchmark interest rates steady and announced it will modify its yield curve control band, the central bank said in a statement. In mainland China, the [Shenzhen Component](https://www.cnbc.com/quotes/.SZI/) fell 1.4% and the [Shanghai Composite](https://www.cnbc.com/quotes/.SSEC/) fell 1% as the [People's Bank of China](http://www.pbc.gov.cn/zhengcehuobisi/125207/125213/125440/3876551/4740101/index.html) kept its key lending rates steady.

The Sakhalin Island complex, partly owned by Gazprom and Japanese companies, is vital to Japan's energy security as it accounts for 9 per cent of the ...

Japan's trading houses continue to own stakes in the Sakhalin-2 project, which Tokyo says is essential for energy security. and REC Ltd, both state-owned, will also be participating in the bidding process, the people said. The government's move signals a potential restart of Russian oil imports by Japan for the first time since June.

"This signals the beginning of the slow unwind of ultra-low interest rates in Japan. "The change in YCC range will help reduce the bond market from being ...

it's clear that it adds to the yen strength story next year." "I think the move was certainly unexpected, to say the least. "It could have been the last chance for the BOJ to move, amid incoming U.S. Kudos to the BOJ for the surprise. The market implications are most prevalent in the forex markets ... However, it is only a first step and yield-curve control (YCC) remains in place, as does negative rate strategy. "It was a surprise to most market participants including ourselves. "It was a surprise decision at a time when the market had expected a lame-duck situation near the end of Governor Kuroda's term...it was a nice move, including the fact that it came against the economists' expectations. Whoever becomes next BOJ Governor must strive to make monetary policy more transparent and predictable." "Today's move reflects the BOJ's determination not to alter its yield curve control policy. "The BOJ will keep on monitoring markets when making further moves as needed. It came all of sudden so market players must be angry about the decision.

After a two-day policy meeting, the bank said it would adjust the fluctuation in long-term rates for 10-year bonds that it accepts to.

The move saw the yen strengthen rapidly against the dollar, with the greenback falling from a daily high of 137 yen to 133 within minutes of the decision. Japan's central bank tweaked its longstanding monetary easing programme on Tuesday, in a surprise move that saw the yen strengthen quickly against the dollar while Tokyo stock markets fell. "The Bank will expand the range of 10-year JGB yield fluctuations from the target level: from between around plus and minus 0.25 percentage points to between around plus and minus 0.5 percentage points," it said in a statement.

The Bank of Japan has sprung a surprise on traders again, as Governor Haruhiko Kuroda hit markets with a hawkish pivot very few saw coming.

The change blindsided investors, just like Kuroda’s move to boost bond purchases in 2014 and Japan’s festive season rate hike in 1989. [widen](https://www.bloomberg.com/news/articles/2022-12-20/kuroda-shocks-by-tweaking-boj-s-yield-cap-sparking-yen-jump) the trading band on 10-year bond yields triggered a jump in the yen and roiled global [markets](https://www.bloomberg.com/news/articles/2022-12-20/yen-jumps-dollar-sinks-after-boj-surprises-with-policy-tweak). BOJ Governor Haruhiko Kuroda’s decision to

Bank of Japan, in a surprising move, has decided to loosen the shackles on its 10-year yield target, leading to the yen rising sharply.

The North's Foreign Ministry said in a statement that Japan's push to acquire counterstrike capability has nothing to do with self-defense but is a clear ...

[United States](/topic/united-states)of supporting and promoting the Japanese military ambitions and undermining regional peace. (AP) Its statement Tuesday also said Japan inflicted "unmeasurable misery and pains on Korean people" during the colonial rule. In October, North Korea fired an intermediate-range missile over Japan, forcing Tokyo to issue evacuation alerts and halt trains. [Business News](/news), [Breaking News](/breakingnewslist.cms)Events and [Latest News](/news/latest-news)Updates on [The Economic Times](/).) [North Korea](/topic/north-korea)threatened Tuesday to take "bold and decisive military steps" against [Japan](/topic/japan)as it slammed Tokyo's adoption of a national security strategy as an attempt to turn the country into an aggressive military power.

North Korea on Tuesday condemned a Japanese military buildup outlined in a new security strategy, calling it dangerous and vowing counteractions.

"I can clear up their doubt about it," Kim Yo Jong said. mainland, in defiance of international sanctions. North Korea fired two medium-range ballistic missiles off its east coast on Sunday, calling it an "important" test for the development of a reconnaissance satellite that it hopes to complete by April. In a separate statement, Kim Yo Jong, the powerful sister of North Korean leader Kim Jong Un, hinted at a technological advance in its ICBM system, and denounced questions over what North Korea said was its bid to develop a spy satellite. North Korea will express its displeasure with action to highlight Japan's "wrong and very dangerous" decision, the spokesperson said, warning of a "shuddering shiver to be felt soon". The spokesman referred to North Korea by the initials of its official name, the Democratic People's Republic of Korea.

The North's statement came four days after Japan announced a security strategy that reflects its determination to possess “counterstrike” capability and ...

In October, North Korea fired an intermediate-range missile over Japan, forcing Tokyo to issue evacuation alerts and halt trains. moves are forcing North Korea to work hard to complete its plans to develop new strategic weapons to thwart enemy attempts to invade the North. The statement accused the United States of supporting and promoting the Japanese military ambitions and undermining regional peace.

India and Japan is planning joint fighter jets exercises. And there is a possibility that India will import Japan's UNICORN for their naval ships.

But now, Australia and India are a priority for Japan, the documents said. Except for the US, both National Security Strategy and National Defence Strategy clearly listed up Japan’d friends. Furthermore, China is strengthening its strategic ties with Russia and attempting to challenge the international order,” the strategy paper noted. The dynamism of the intersection of the Pacific and the Indian Oceans is a growth engine for the global economy. At the same time, the Indo-Pacific region faces a host of security challenges. “The Indo-Pacific region is the core of global vitality, home to more than half of the world's population.

U.S. Treasury yields rose after Japan unexpectedly raised its cap on 10-year government bond yields, sparking a sell-off in global long-duration bond ...

Yields move inversely to prices. [Bank of Japan](https://www.cnbc.com/bank-of-japan/) caught markets off guard by tweaking its yield controls to allow the yield on its [10-year JGB](/quotes/JP10Y-JP/) to move 0.5% either side of its 0% target, up from 0.25% previously, in a move aimed at cushioning the effects of protracted monetary stimulus measures. [10-year Treasury note](/quotes/US10Y/) was up by 10 basis points at 3.69%, while the yield on the [30-year Treasury bond](/quotes/US30Y/) rose by more than 11 basis points to 3.74%.

The BoJ has caught markets totally off guard with the first signal that a historic policy shift could be on the horizon after decades of ultra-loose ...

“The market has no compelling reason not to push 10-year bond yields to the upper limit,” said Priya Misra, head of global rates strategy at TD. His term at the helm of the central bank ends in April. It forecasts activity to grow at a pace that is above its potential growth rate. “Against this background, the BoJ’s battle had become increasingly hard.” Email Cecile at [[email protected]](mailto:[email protected]) Bond yields surged with US 10-year bond yield up 10 basis points to 3.69 per cent. “Markets are positioned for a policy pivot, but we’re not seeing any shift from the BoJ yet. Australian 10-year bond yields jumped a massive 0.25 percentage points to 3.73 per cent. “In fact, the BoJ stated clearly that the move to widen the target range was a way to sustain the easy monetary policy settings and improve market functionality,” said Ms Kong. It was previously 0.25 per cent. “Ultimately the BoJ is just trying to apply some flexibility because in a rising bond yield environment, allowing the 10-year yields to trade up to 0.5 per cent makes it a bit easier to defend the target,” said Mr Attrill. The BoJ will widen the band within which it allows the 10-year government bond yield to trade at, being 0.5 per cent above or below its zero per cent target.

South Korea's military said North Korea fired around 130 artillery shells into the sea off its east and west coasts in the latest apparent military drill ...

The South Korean premier said that although it is "hard to know exactly when" a test would happen, "we gather that they are prepared", Sky News reported. North Korea is "ready" to test a nuclear weapon and will likely do so, South Korea prime minister Han Duck-soo said last week. The country conducted an "important, final phase" test on Sunday for the development of a spy satellite, which it seeks to complete by April 2023. Kim Yo Jong, the sister of North Korean leader Kim Jong Un, was quoted as saying by Reuters that the country's initiative to develop a spy satellite is a "pressing priority directly linked to security." North Korea on Tuesday made it clear that sanctions will not deter the country's missile programme. Japan is reported to have revealed its biggest military build-up since World War Two amid regional tension with China; links have also been drawn to Russia's Ukraine invasion stoking war fears, news agency Reuters reported.

The yen surged and Asian shares fell sharply on Tuesday after the Bank of Japan's (BOJ) decision to allow long term interest rates to rise more, ...

So we will get a bit more color around that in terms of what is the extent of the shift in thinking from Bank of Japan. But yes, at the margin, it does add to the whole story that globally, central banks are tightening policy." The three markets closed in the red for the fourth straight session. Narayan added that Japanese investors, who are big international investors, will likely withdraw some of the money from international markets and put them back into domestic markets, because the opportunities may start to look a bit more attractive for them domestically. "I think the other reason why we've seen equity markets slide down is because Bank of Japan was the last bank which was still holding on to accommodative policy. US crude ticked up 0.7 percent to $75.71 a barrel. The dollar dropped 2.4 percent against the yen to 133.62 after the BOJ decision, hitting a four-month low. So this effective tightening of policy came as a surprise to the markets. Brent crude rose to $80.44 per barrel. Hong Kong's Hang Seng Index was down 1.4 percent while China's CSI300 Index was off 1.15 percent. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9 percent. And that's why we are seeing such sharp market reaction," Abhilash Narayan, Senior Investment Strategist Group Wealth, Standard Chartered Bank told CNBC-TV18.