Japan’s Nikkei 225 index rebounded on Tuesday, after a massive selloff a day earlier fuelled by worries over the US economy and a stronger yen.Japan’s Nikkei 225 index rebounded on Tuesday, after a massive selloff a day earlier fuelled by worries over the US economy and a stronger yen.Japanese stocks soared more than 10% early Tuesday, a day after plunging and setting markets tumbling in Europe and on Wall Street.
Markets on Monday started with a plunge reminiscent of 1987’s crash, that swept around the world and pummelled Wall Street with more steep losses, as fears worsened about a slowing US economy., while European markets also fell, with Britain’s FTSE 100 suffering its steepest one-day decline in more than a year.
Professional investors also pointed to the Bank of Japan’s move last week to raise its main interest rate from nearly zero. Such a move helps boost the value of the Japanese yen, but it could also force traders to scramble out of deals where they borrowed money for virtually no cost in Japan and invested it elsewhere around the world.
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