Asia’s manufacturing titans were subject to contrasting fortunes today: Japan’s biggest firms were buoyed by rising optimism but China was hit by a credit squeeze and falling orders.

Japanese prime minister Shinzo Abe gained a huge boost for his “shock and awe” medicine today as the world’s third- biggest economy moved out of deflation territory for the first time since October.

Japanese Prime Minister Shinzo Abe's "shock and awe" tactics to revive the world's third biggest economy paid off in May with the biggest rise in exports since 2010.

Warnings of slower but more stable growth over the coming months

Tokyo refuses more stimulus

Japan's central bank has refrained from promising more stimulus for the world's third-largest economy despite equity and bond market turbulence in recent weeks.

A worldwide share plunge saw the FTSE 100 Index fall more than 100 points today as a run of pessimism on the markets pulled leading stocks further down from near-record heights seen just a few weeks ago.

Japan’s “Abenomics” strategy of pumping trillions into its stagnant economy and ramping up public spending is paying off as the growth picture improves.

Stimulus measures pushing down bond yields keep equities in demand

Bloomberg apologised after the financial news agency let its reporters access clients' information

Economic View

The yen fell to a four-year low against the dollar today as the Japanese central bank put its ambitious plan to double the ailing Far Eastern economy’s money supply into action.

London's stock market always reacts to big global news – but yesterday investors got more than they bargained for. Korean nuclear threats, the re-emergence of bird flu, eurozone fears and yesterday's scary US jobs data caused even the most optimistic punter to make a quick exit. The blue-chip index fell to a two-month low – the biggest one-day fall since 7 November last year.

Country’s leader gives his name to an ambitious plan to end 15 years of deflation and recession