Most equities rallied Tuesday after the previous day’s global rout fueled by US recession fears that have led to calls for the Federal Reserve to cut interest rates before its next meeting.
Japanese shares rebounded on Tuesday after plunging on Monday and sending shockwaves through global financial markets.
The Nikkei 225 stock index jumped by 10.23%, or 3,217 points in its biggest one day gain in points.
In London, the FTSE 100 opened higher following the previous day’s fall, while stock markets in Paris and Frankfurt also rose.
The sharp fall in Tokyo followed the Bank of Japan’s decision to raise interest rates for just the second time in 17 years.
It sent the yen soaring against the dollar making Japanese stocks – and the country’s exports – more expensive for foreign investors and buyers.
Fears that the American economy is heading for a slowdown also hit shares in the UK, Europe and in the US.
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Jesper Koll, executive director of Monex Group Japan, said he still had confidence in the country’s stocks despite Monday’s big falls.
“Japan’s fundamentals are strong, recession risks are nil, and corporate leaders are dead-set on raising capital returns,” he told the BBC.
Shares in South Korea also regained some ground on Tuesday. The Kospi stock index rose 3.5% after falling 8.8% on Tuesday – its worst trading session since the global financial crisis of 2008.
Taiwan’s main stock index jumped almost 3.4%, after a record 8.4% drop on Monday.
The news comes after share prices tumbled globally on Monday.
In New York, the technology-heavy Nasdaq index opened 6.3% lower but those losses eased during the day and the index ended the session down 3.4%.
The S&P 500 fell 3% and the Dow Jones Industrial Average was 2.6% down by the end of trading on Monday.
In Europe, the CAC-40 in Paris trimmed earlier losses to end 1.4% lower while Frankfurt’s DAX and the UK’s FTSE 100 lost about 2% each.
Credible News.ng
