Japanese equities powered higher, leading gains in Asia, as they retraced some of the losses sustained in Monday’s global rout that wiped out billions across markets from New York to London.
US equity futures also advanced and Treasuries fell. Japan’s two key share gauges both jumped almost 11%, after tumbling more than 12% the day before, while South Korea’s Kospi Index rallied more than 3%.
A regional gauge halted a three-day decline. The initial positive signs suggest traders are catching their breath following a dramatic day in which almost every risk asset were sold.
“As Japanese equities rebound, the rest of the Asian markets are likely to rebound together today,” said Tomo Kinoshita, a global market strategist at Invesco Asset Management in Tokyo.
“As the magnitude of Japan’s stock price decline yesterday turned out to be much more than Europe and the US, the market participants now recognize that Japan’s market correction yesterday was excessive.”
