A man looks at an electronic quotation board displaying stock prices of Nikkei 225 on the Tokyo Stock Exchange in Tokyo on August 6, 2024. Tokyo stocks bounced back in early trade on August 6 following a historic selloff on worries over the US economy and a stronger yen. Photo: AFP / KAZUHIRO NOGI
Japanese stocks rebounded sharply in early trade on Tuesday, after their biggest single day rout since the 1987 Black Monday sell-off in the previous session.
The Nikkei rallied 8.1 percent at 34,004.22 as of 0026 GMT, while the broader Topix was up 8.57 percent.
The Nikkei plunged 12.4 percent on Monday in its worst performance since the October 1987 crash, as investors were shaken by last week's plunge in global stock markets, US recession risks and worries investments funded by a cheap yen were being unwound.
Monday's collapse was a "reminder that it is next-to-impossible to diversify equity risk by region (or by sector or style) during major corrections or bear markets," said Stephen Dover, chief market strategist and head of Franklin Templeton Institute at Franklin Templeton.
"Opportunity will arise, but in our view, it is premature to step in at this point."
- Reuters
Look back over updates on the global share plunge with RNZ's blog:
