Japanese shares rebound a day after big sell-off

Japanese shares rebounded on Tuesday after plunging on Monday in a sell-off that sent shockwaves through global financial markets.

The Nikkei 225 stock index rose 10.23%, or 3,217 points, its biggest one-day gain in points, after falling more than 12% the previous day.

Tokyo’s market plunge on Monday came after the Bank of Japan raised interest rates for the second time in 17 years, sending the yen soaring against the dollar, making Japanese stocks – and the country’s exports – more expensive for foreign investors and buyers.

Stocks in the US, UK and Europe also fell on Monday. due to concerns that the US economy is heading for recession.

Jesper Koll, chief executive officer of Monex Group Japan, said he remains confident in the country’s stocks despite Monday’s big drop.

“Japan’s fundamentals are very strong, the risk of recession is zero and business leaders are determined to increase capital returns,” he told the BBC.

Stocks in South Korea also recovered some ground on Tuesday. The Kospi index rose 3.5% after falling 8.8% on Tuesday, its worst day since the 2008 global financial crisis.

Taiwan’s main stock index rose nearly 3.4%, following a record 8.4% drop on Monday.

The news comes after global stock prices fell sharply on Monday.

• In New York, the tech-heavy Nasdaq opened down 6.3% but pared losses throughout the day and the index ended down 3.4%.

• The S&P 500 fell 3% and the Dow Jones Industrial Average fell 2.6% at the close of trading on Monday.

• In Europe, the CAC-40 index in Paris cut earlier losses to close down 1.4% while Frankfurt’s DAX and Britain’s FTSE 100 both fell around 2%.

Weak US jobs data on Friday raising concerns about growth in the world’s largest economy.

This also fueled speculation about the timing and extent of interest rate cuts by the Federal Reserve.

“Markets are very volatile right now and will likely remain volatile until the Fed makes its decision in September, so we can’t rule out a quick turnaround in either direction,” said Stefan Angrick, a senior economist at Moody’s Analytics.

There are also concerns that stocks of big tech companies, especially those investing heavily in artificial intelligence (AI), have become overvalued and are now struggling.

Last week, chip maker Intel announces mass layoffsas well as disappointing financial results.

There is also speculation that rival Nvidia, one of the main beneficiaries of the boom in demand for AI technology, will delay the launch of its latest product.