Asian markets traded higher on Tuesday, with Japan’s Nikkei recovering almost all the losses seen in the previous session, amid a fall in yen.
Japan’s Nikkei 225 index and Topix rebounded more than 10%, the most since October 2008, after the yen slumped about 1% against the dollar. A weak yen led a rally in stocks of exporters such as tech companies and automakers.
Banking shares jumped 10%, after tumbling 17% on Monday, while yields on 10-year government bonds jumped 15 basis points. All 33 of the Topix industry gauges climbed, Bloomberg reported.
Softbank Group Corp shares jumped almost 10%, while Marubeni stock price rallied over 13%.
Among other Asian markets, South Korea’s Kospi jumped over 4% while the Kosdaq surged 5.5%. South Korean markets rebounded after it witnessed a temporary halt on Monday after circuit breakers activated.
Samsung Electronics shares gained 4.2%, while chipmaker SK Hynix rallied 5.5%.
Japanese stock markets crashed on Monday, with the benchmarks tumbling 12% amid risk from a stronger yen, tighter monetary policy and concern over the US recession. The index saw its worst sell-off since the 1987 Black Monday crash.
However, even with a rebound on Tuesday, Japanese stocks will likely remain at bear market levels in the short term after a steep three-day drop sent the equity gauges down more than 20% from their July peak, Bloomberg reported.
Wall Street
Meanwhile, on Wall Street, the US stock futures traded higher on Tuesday. S&P 500 futures rebounded 0.9%, while Nasdaq futures rose 1.2%.
Overnight, the US stock market ended sharply lower, extending its sell-off, with all the three major indexes registering their biggest three-day percentage declines since June 2022. The Nasdaq and S&P 500 closed at their lowest levels since early May.
The Dow Jones Industrial Average crashed 1,033.99 points, or 2.6%, to 38,703.27, while the S&P 500 tanked 160.23 points, or 3.00%, to 5,186.33. The Nasdaq Composite ended 576.08 points, or 3.43%, lower at 16,200.08.
(With inputs from Bloomberg)
