Japan stocks rebound 9% after historic losses; other Asia markets also recover
Japan stocks rebounded sharply Tuesday after the Nikkei 225 and the Topix dropped over 12% in the previous session. Other Asia-Pacific markets were also higher.
Japan stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix dropped over 12% in the previous session. Other Asia-Pacific markets were also higher.
Japan’s Nikkei 225 — which saw its largest loss in the previous session since the 1987 Black Monday crash — as well as the broad-based Topix gained 9% after reaching session highs of over 10%. The recovery has brought both the Nikkei and the Topix back into positive territory for the year so far.
The Bank of Japan raising rates to their highest level since 2008 on July 30 caused the yen to strengthen to a seven-month high, pressurizing stocks.
Markets globally were also spooked by fears of a U.S. recession stoked by a weaker-than-expected jobs report as well as the unwinding of the yen “carry trade.”
Japan’s heavyweight trading houses rebounded more than 6%, with Mitsui up over 9%. Softbank Group Corp jumped over 8%.
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