Asian stock markets experienced a dramatic rebound on Tuesday, recovering sharply from the previous day’s severe losses. Tokyo’s stock exchange led the recovery, with the benchmark Nikkei 225 index soaring over 10 percent, erasing some of the heavy losses incurred in what was one of the worst market crashes since “Black Monday.”
The Nikkei 225 jumped 10.33 percent, or 3,249.36 points, to close at 34,707.78, while the broader Topix index surged 10.26 percent, adding 228.49 points to end at 2,455.64. This recovery follows a record-breaking selloff on Monday, when the Nikkei plummeted by 12 percent, its worst single-day decline since October 1987’s “Black Monday,” when global markets suffered severe losses.
In South Korea, the Kospi index also rebounded strongly. It opened sharply higher, gaining 4.35 percent to reach 2,547.66 within the first 15 minutes of trading. The Kospi’s Monday performance had been marked by its largest daily loss of nearly 9 percent due to growing concerns over a potential U.S. recession and disappointing performance from major technology companies.
An emergency “sidecar” order was issued at 9:06 a.m. local time to halt trading on the Kospi 200 index after it surged more than 5 percent within a minute. This measure was aimed at stabilizing the market and preventing excessive volatility.
Key stocks in Seoul saw substantial gains, with major companies such as Samsung Electronics, SK hynix, LG Energy Solution, Hyundai Motor, LG Chem, and SK Innovation all making significant recoveries. The South Korean won also strengthened slightly against the U.S. dollar on Tuesday, reflecting improved investor sentiment.
The surge in Tokyo’s markets represents a notable recovery from the prior day’s heavy losses, which had driven the Nikkei into bear market territory with a close at 31,458.42, down 4,451.28 points. The dramatic decline on Monday was driven by investor fears over the U.S. economy and the impact of a stronger yen, which had heightened concerns about Japan’s export-dependent economy.
This resurgence in Asian markets highlights a potential rebound after the historic crash and underscores the volatile nature of current global financial conditions. As investors digest the recent market fluctuations, the performance of key indices like the Nikkei and Kospi will be closely watched for further signs of stability or additional risk.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
