Japan stocks rebound sharply after worst rout in history as other Asia markets also rally

Japanese shares rebounded on Tuesday, recovering most of their previous day’s losses. The Nikkei 225 traded approximately 10% higher, while South Korea’s Kospi bounced back by about 3%. Hong Kong’s Hang Seng Index rose 1%, and Taiwan stocks regained 4%. The rally in Japan is considered typical after a market crash, with no evidence of abandoning Japanese equities. One notable gainer was soy sauce maker Kikkoman Corporation, which traded around 21% higher after a significant loss the previous day. The global market rout triggered by the Nikkei’s plunge also impacted major Asian, European, and US markets. Wall Street experienced losses, with all major indices falling between 2.6% and 3.4%. However, S&P 500 and Nasdaq futures bounced back after the close of the main trading session. Worries about a US recession and the rapid unwinding of carry trades involving the yen contributed to the market volatility. The yen, which surged due to the Bank of Japan’s hawkish tilt in monetary policy, has slightly pulled back against the US dollar.