Japanese stocks rebound from worst crash since 1987 as global markets recover

Japanese shares soared Tuesday, clawing back some of their record losses from the previous day and underpinning a tentative recovery on global markets.

Japanese shares soared Tuesday, clawing back some of their record losses from the previous day and underpinning a tentative recovery on global markets. The benchmark Nikkei 225 index finished 10% higher and the broader Topix closed around 9% up. Elsewhere in Asia, South Korea’s Kospi rebounded by 3.3%, while Taiwan stocks gained 3.4%. Markets around the world plunged during Monday’s session when a combination of fears about a slowing US economy, rising Japanese interest rates and crumbling tech stocks combined to trigger a meltdown. Stocks in Europe also recouped some of their losses in early Tuesday trade. The Stoxx 600 index, the region’s benchmark, was up 0.2% by 3.24 a.m. ET, having closed down 2.2% the day before. London’s FTSE 100 ticked down 0.1%. US stocks were also set to open higher, with futures contracts climbing in pre-market trade. S&P 500 futures were up 0.7% and Nasdaq futures up 0.8%. The bounce in Japan is “typical after a market crash,” Neil Newman, head of strategy at Astris Advisory in Tokyo, told CNN. “Importantly: Fundamentals are sound, the economy is doing fine, there is no evidence of abandoning Japanese equities.”