Japanese Nikkei wipes out all of 2015 gains

Nikkei has wiped out all of their 2015 gains, with more than 4% drop today. China is Japan's one of the largest trading partner and with the former slowing down, appeal for Japanese stocks are waning.

Moreover last week, Japanese Prime Minister Shinzo Abe launched Abenomics 2, which includes three new arrows, to boost Japan's GDP by more than $1 trillion, reforming social security and backing child rearing policies.

Though this development should be taken as positive, but creates confusion as analysts believe many of the targets of Abenomics 1, such as structural reforms, inflation hasn't been reached yet.

On the other hand Bank of Japan (BOJ) isn't giving any guidance on what the bank might do in terms of monetary policies. Many believe BOJ is done with easing as it is worrying over oil price and its instruments are in doubt since it failed to bring back inflation on a sustainable path so far.

Bad news just isn't over. Japan's pension fund, largest in the world with $1.7 trillion in assets announce last year, it would fill 25% of its portfolio with domestic equities and as of now all buying is done with.

Though Nikkei closed down 4% for the day, future recovered and currently trading at 17170.