Yeah, I think you misunderstood the situation :) - Japan raised their rate from 0% to 0.25% and cut back their bond purchases in a move to strengthen the yen, a

Yeah, I think you misunderstood the situation :) - Japan raised their rate from 0% to 0.25% and cut back their bond purchases in a move to strengthen the yen, at the same time the dollar got weaker. The Nikkei tumbled because many large companies in Japan - 1) had carry trade positions they had to unwind, and/or 2) export to the US (harder when dollar is weak vs yen and harder if the US enters recession).