Japanese stocks rebounded 10.2% on Tuesday following a 12.4% drop on Monday; Nikkei index at 34,675.46.
Japanese stocks rebounded sharply on Tuesday following a significant sell-off on Monday, with the Nikkei index closing up 10.2% at 34,675.46 after a 12.4% drop. The rebound came after the yen reversed its gains, indicating the unwinding of yen-funded global carry trades was easing. Investors had been shaken by last week's plunge in global stock markets, U.S. recession risks, and worries about investments funded by a cheap yen being unwound, which triggered a sell-off in Japanese equities on Monday. The Nikkei's rebound lifted other Asian stock markets, and overnight, safe-haven U.S. yields rose from lows, a sign that the panic was abating. However, uncertainties remain, with analysts pointing to the possibility of more volatile market moves in the near term.