Japanese stocks surged in early trade on Tuesday, rebounding from the previous day’s historic 12 per cent collapse.
Amid warnings from traders to expect extreme volatility over the coming hours, the broad Topix index rose 8.3 per cent in the first half-hour of trading as investors began cautious bargain-hunting and the yen stabilised at about ¥145.70 after two weeks on the rise.
Global markets have in recent days fallen amid fears the Federal Reserve has been too slow to respond to signs the US economy was weakening, and might be forced to play catch-up with a series of rapid interest rate cuts.
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