This is a classic case of bad timing. If it hadn't been for the downgrade, those (Japanese) semiconductor shares should have performed strongly today.

The newspaper reports have somewhat relieved nagging market concerns over political instability, which could result if the LDP suffers a loss in the election.

Investors who were fearful of a further downturn in Tokyo stocks a while ago are now jumping onto the buying bandwagon.

I haven't seen any recovery in fundamentals in Japan. We are just back at square one.

Yields reached an attractive level, so some buying may come through, especially after the auction went well. Yields already reflect speculation about an economic recovery and a policy shift to some extent.

Everyone believes the BOJ is going to be delayed.