Japan market rally shows signs of temporarily losing steam

Analysts expect equities to continue gains this year but at a slower pace

The rally is showing signs of pausing following the Bank of Japan's Jan. 22-23 policy meeting, which raised expectations of an end to its negative interest rate policy. © Reuters

LISA KIM, Nikkei staff writer

February 7, 2024 11:23 JST

TOKYO -- The rally in the Japanese equity market at the start of the year that surprised even bulls may temporarily be losing upward momentum, with some analysts anticipating a range-bound market until around May.

The rally is showing signs of pausing following the Bank of Japan's Jan. 22-23 policy meeting, which raised expectations of an end to its negative interest rate policy.