Japanese shares rebounded in early morning trading on Tuesday after plunging on Monday in a sell-off that sent shockwaves through global financial markets.
The Nikkei stock index rose more than 8% after falling more than 12% the previous day.
Yesterday’s market plunge came after the Bank of Japan’s second interest rate hike in 17 years sent the yen soaring against the dollar, making Tokyo stocks – and Japanese commodities in general – more expensive for foreign investors and buyers.
Stocks in the US and Europe also fell on Monday on concerns the US economy is heading for recession.
Earlier 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%.
