The Nikkei closed the day 10.23% higher at 34,675.46, hitting its largest daily gain since October 2008 and highest ever rise in terms of index points
Japan’s stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix declined more than 12% in the previous session. Other Asia-Pacific markets were mostly up.
The Nikkei 225 — which saw its biggest loss in the earlier session since the 1987 Black Monday crash — as well as the broad-based Topix added more than 9%.
The Nikkei closed the day 10.23% higher at 34,675.46, hitting its largest daily gain since October 2008 and highest ever rise in terms of index points. The Topix ended 9.3% higher at 2,434.21.
The rallies in Japan saw both indexes jump back into positive territories for the year so far.
On July 30, the Bank of Japan had raised rates to their highest level since 2008, causing the yen to rise to a seven-month high, pressurizing stocks.
Markets globally were also hit by worries of a U.S. recession stoked by a weaker-than-expected jobs report as well as the unwinding of the yen “carry trade.”
Japan’s heavyweight trading houses bounced back to end at gains of more than 5%, with Mitsui up 10.43% and Softbank Group Corp gaining 12.06%.
Other sectors that saw rallies included Japanese automakers and semiconductor suppliers, such as Suzuki Motor and Renesas Electronics, which gained more than 17.01% and 19.06%, respectively.
The yen weakened 1.45% to trade at 145.6 against the U.S. dollar.
South Korea’s Kospi climbed 3.3% to close the day at 2,522.15, while the small-cap Kosdaq added 6.02% to 732.87. The South Korean markets had been halted temporarily on Monday after they dropped 8%, triggering circuit breakers.
South Korean heavyweight Samsung Electronics gained 1.54%, while chipmaker SK Hynix jumped 4.87%.
Mainland China’s CSI 300 ended about even at 3,342.98, while Hong Kong’s Hang Seng index was little changed as of its final hour of trade.
Australia’s S&P/ASX 200 ended up 0.41% to reach 7,680.6.
