While markets initially rose on the BOJ's decision to increase ETF purchases, optimism soon waned, explains Takuji Okubo, principal and chief economist at Japan Macro Advisors.
Masakazu Takeda, portfolio manager at Hennessy Japan Fund, explains why structural reforms are now more important than further monetary easing.
Gareth Berry, FX and rates strategist at Macquarie, says Fed tightening weakens the yen, which helps to boost inflation in Japan.
Nicholas Smith, Japan strategist at CLSA, says the Fed hike signals confidence in the U.S. economy, which is a positive for Japanese cyclicals.
Song Seng Wun, economist at CIMB Private Banking, says the 'Fed dot plot' will give emerging markets' central banks room to cut rates if there is sluggish growth.
Mikio Kumada, executive director and global strategist of LGT Capital Partners, says Japan has been in the doldrums for 20 years, but the status quo is changing.
Asian equities closed mostly lower on Monday, as investors remain focused on the mid-week decision from the Fed.
Martin Schulz, senior economist at Fujitsu Research Institute, says despite concerns of a China slowdown, businesses in Japan are still leaving investment plans in place for expansion.
Kathy Matsui, MD and chief Japan strategist at Goldman Sachs Japan, says the long slide in oil, perception of weak global demand and Fed-ticipation all play into today's sell-off in equity markets.
Confidence at big Japanese manufacturers held steady in the three months to December but is seen worsening ahead, a BOJ survey showed.
Marcel Thieliant, Japan economist at Capital Economics, identifies the positive signals the Bank of Japan has given ahead of the key tankan survey.
Further BOJ easing will be a big investment theme next year despite Japan escaping recession, says Kay Van-Petersen, global macro strategist at Saxo Capital Markets.
Daryl Liew, head of portfolio management at REYL Singapore, discusses Japan's economic fundamentals including GDP data and the labor force.
China has important economic indicators due this week, including trade figures, industrial production, retail sales and home sales.
Roger Bridges, global rates and currencies strategist at Nikko Asset Management, explains that the dollar selloff was caused by the expectation of a wider policy divergence between the Fed and ECB.
Jeffrey Kleintop, chief global investment strategist at Charles Schwab, says Japanese earnings will improve because of pro-growth initiatives, among other factors.
Japanese markets have done well because of expansive monetary policy, says Beat Wittmann, co-founder, partner and chairman at Porta Investors.
Volatility will continue because there is a divergence between market expectations and Fed action, says Vasu Menon, VP of OCBC Group Wealth Management.
While fresh geopolitical fears after Turkey shot down a Russian warplane sent most Asian equities lower, oil prices and some energy plays saw gains.
Two Bank of Japan board members dissented from the bank's baseline scenario that inflation would reach 2 percent by 2017.