Sentiment towards Japanese stocks should start to improve again now the government has started acting on its promise to deliver long-term economic reforms, analysts say.
Japan's government late Monday released a draft of Prime Minister Shinzo Abe's long-awaited growth strategy.
This included already-flagged policies such as a plan to cut the corporate tax rate and other steps like a promise to ease regulation in agriculture and allow more foreign workers to be employed in the housekeeping and nursing sectors.
"I think the latest moves out of the Abe administration will be very important for sentiment, especially for global investors who had lost some faith in the reform efforts," said Charles Blankley, CIO at Gemmer Asset Management in San Francisco.
"I think that [sentiment] will clearly turn around in the second half of this year," he told CNBC Asia's "Squawk Box" Tuesday.