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Japanese shares rebounded in Tuesday morning trade after plunging on Monday in a rout that sent shockwaves through global financial markets.<\/p>\n
The Nikkei 225 stock index rose by as much as 10% after slumping by over 12% the previous day.<\/p>\n
Monday’s market rout in Tokyo came after the Bank of Japan’s second rate hike in 17 years sent the yen soaring against the dollar making Japanese stocks – and the country’s exports – more expensive for foreign investors and buyers.<\/p>\n
Stocks in the US, the UK and Europe also fell on Monday<\/a> due to fears that the American economy is heading for a slowdown.<\/p>\n<\/div>\n Shares in South Korea were also regaining ground on Tuesday. The Kospi stock index was up nearly 5% after falling 8.8% on Tuesday – its worst trading session since the global financial crisis of 2008. <\/p>\n Taiwan’s main stock index was trading more than 1.5% higher, after a record 8.4% drop on Monday.<\/p>\n Weak jobs data in the US on Friday<\/a> sparked concerns about growth in the world’s largest economy.<\/p>\n It also stoked speculation about when, and by how much, the Federal Reserve will cut interest rates.<\/p>\n \u201cMarkets are very volatile at the moment and will likely stay volatile until the Fed decision in September. So we wouldn’t rule out rapid swings in both directions,\u201d said Stefan Angrick, a senior economist with Moody’s Analytics.<\/p>\n There are also concerns that shares in big technology companies, particularly those investing heavily in artificial intelligence (AI), have been overvalued and are now facing difficulties.<\/p>\n\n
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