Japan’s Nikkei closed more than 10pc higher on Tuesday, a day after it had set markets tumbling in Europe and on Wall Street.
Other markets in Asia also rebounded, but more moderately, appearing to settle somewhat after the rollercoaster ride that started the week.
Monday began with a plunge abroad reminiscent of 1987’s Black Monday crash that swept around the world and pummelled Wall Street with more steep losses, as fears worsened about a slowing US economy.
Tuesday is already opening on the rebound.
The Nikkei gained nearly 11pc early on Tuesday and bounced throughout the day to close up 3,217.04 points at 34,675.46 as investors snapped up bargains after the 12.4pc rout of the day before.
On Monday, the S&P 500 dropped 3pc for its worst day in nearly two years, closing at 5,186.33. That had followed early drops on Friday.
after a report showing US employers slowed their hiring last month by much more than economists expected.
That was the latest piece of data on the US economy to come in weaker than expected, and it has raised fears that the Federal Reserve has pressed the brakes on the US economy by too much for too long through high interest rates in hopes of stifling inflation.
A report Monday by the Institute for Supply Management said growth for US services businesses was a touch stronger than expected, led by the arts, entertainment and recreation sectors, along with accommodations and food services.
Professional investors cautioned that some technical factors could be amplifying the neck-snapping losses.
On Tuesday, nearly all markets in Asia aside from Singapore saw gains.
South Korea’s Kospi jumped 4.3pc to 2,546.64. Hong Kong’s Hang Seng index was up 0.5pc at 16,775.65 And in Australia, the S&P/ASX 200 edged 0.3pc higher, to 7,677.50.
Taiwan’s Taiex was up 1.2pc after plunging 8.4pc the day before.
The Shanghai Composite index, largely bypassed by Monday’s drama, was up just over 1 point, at 2,861.87.
In early trading in Europe the Iseq index of leading Irish shares and many of its peers across the continent were in the green, starting to claw back some of their previous losses. In Dublin AIB, up 2.38pc, and Bank of Ireland, up 1.81pc in early trading, led the recovery having also seen some of the sharpest moves lower on Friday and Monday.
