Asian stocks extend recovery, yen weakens as some calm returns

Hong Kong: Asian stocks rose again Wednesday as some stability returned after a volatile start to the week, though Tokyo saw more big swings and the y...

Hong Kong: Asian stocks rose again Wednesday as some stability returned after a volatile start to the week, though Tokyo saw more big swings and the yen weakened further as analysts warned more upheaval could be in store.

After Monday's collapse that saw trillions of dollars wiped off valuations globally, traders returned to pick up bargains on Tuesday, with Japan's Nikkei bouncing back from a 12.4 percent loss to enjoy a more than 10 percent gain.

The recovery continued on Wall Street, with some observers saying the selling may have been a little overdone.

And Asia extended the rally, with Bank of Japan deputy governor Shinichi Uchida helping to soothe anxiety in a dovish speech in which he said officials would maintain their ultra-loose policies while there were ructions in markets.

"As for the future conduct of monetary policy, in a nutshell, I believe that the Bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile," Uchida said in a speech.