Japan stocks rebound a day after global market rout

Japanese shares have rebounded in early Tuesday morning trade after plunging on Monday in a rout which sent shockwaves through global financial markets.

The Nikkei 225 stock index was trading more than 9% higher after slumping by over 12% the previous day.

Yesterday’s market rout in Tokyo came after the Bank of Japan’s second rate hike in 17 years sent the yen soaring against the dollar making Japanese stocks – and the country’s goods in general – more expensive for foreign investors and buyers.

Stocks in the US and Europe also fell on Monday due to fears that the American economy is heading for a slowdown.

Earlier in New York, the technology-heavy Nasdaq index opened 6.3% lower but those losses eased during the day and the index ended the session down 3.4%.

The S&P 500 fell 3% and the Dow Jones Industrial Average was 2.6% down by the end of trading on Monday.

In Europe, the CAC-40 in Paris trimmed earlier losses to end 1.4% lower while Frankfurt’s DAX and the UK’s FTSE 100 lost about 2% each.

It came after weak jobs data in the US on Friday sparked concerns about the world’s largest economy.

There are also concerns that shares in big technology companies, particularly those investing heavily in artificial intelligence (AI), have been overvalued and are now facing difficulties.

Last week, chipmaker Intel announced major layoffs, as well as disappointing financial results.

There is also speculation that rival Nvidia, which has been one of the main beneficiaries of the boom in demand for AI technology, will delay its latest product launch.