The upscale shopping district of Ginza in Tokyo, Japan, on Saturday, May 4, 2024.
Bloomberg | Bloomberg | Getty Images
Japan stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix dropped over 12% in the previous session. Other Asia-Pacific markets also opened higher.
Japan’s Nikkei 225 — which saw its largest loss in the previous session since the 1987 Black Monday crash — and the broad-based Topix gained over 10%.
The yen weakened over 1% to trade at 145.75 against the U.S. dollar.
Japan’s heavyweight trading houses all saw rebounds of over 8%, with Marubeni up over 13%. Softbank Group Corp jumped almost 10%.
South Korea’s Kospi jumped above 4% while the small cap Kosdaq was up over 5.5%. The rebound comes after South Korean markets were halted temporarily on Monday after circuit breakers activated.
South Korean heavyweight Samsung Electronics rose 4.2%, while chipmaker SK Hynix climbed 5.5%.
Australia’s S&P/ASX 200 opened up 0.16%.
Oil prices also rose with Brent crude climbing 1.65% to trade at $77.56 per barrel. U.S. West Texas Intermediate crude rose 1.86% to trade at $74.30.
Japan June household spending numbers showed a larger-than-expected fall year over year, dropping 1.4% in real terms. The average monthly income per household was up 3.1% in real terms from the previous year. The larger than expected fall could restrain the BOJ’s plans to raise rates.
Hong Kong Hang Seng index futures were at 16,781, lower than the HSI’s last close of 16,698.36.
The Reserve Bank of Australia will release its cash rate later today, with economists expecting it to remain steady at 4.35%.
Overnight in the U.S., the 30-stock Dow and the S&P 500 notched their worst sessions since September 2022.
The Dow dropped 1,033.99 points to end 2.6% lower, while the S&P 500 slid 3%. The Nasdaq Composite shed 3.43% ending 15% off its closing high.
—CNBC’s Hakyung Kim, John Melloy and Sarah Min contributed to this report.
