Friday proved another tough day for Asian markets, with Tokyo bearing the brunt of the volatility.

Japan’s Nikkei benchmark index spent most of the day in the red, closing down 0.19% at 18,264.22. Although it surged almost 8% on Wednesday, the Tokyo index closed down 2.5% on Thursday – sustaining some heavy losses.

Investor sentiment is being increasingly affected by speculation that the US Federal Reserve will raise interest rates at their meeting next week, which is affecting markets globally.

However, Japanese Prime Minister Shinzō is continuing to instigate policy to stimulate the economy, including the news that Japan Post is seeking to raise as much as 1.39tn yen ($11.5bn, £7.4bn) in a stock market listing. The Japan Post controls the country’s largest bank, Japan Post Bank, and Japan Post Insurance, the biggest insurer and will be be one of Japan’s largest public share sales in more than 30 years.

Chief cabinet secretary Yoshihide Suga said the share offering would encourage a shift of savings out of bank deposits and into the stock market.