Tokyo August 6 2024: Japanese stocks rebounded sharply in morning trade on Tuesday, after their biggest single day rout since the 1987 Black Monday sell-off in the previous session.
The Nikkei (.N225) rallied 9.4% at 34,416.32 as of the midday break, while the broader Topix (.TOPX) was up 9.3% at 2,434.21.
The Nikkei was last up 2,957.9 points after rising over 3,000 points earlier in the session, surpassing its largest intraday points gain on record.
The benchmark index plunged 12.4% on Monday in its worst performance since the October 1987 crash, as investors were shaken by last week’s plunge in global stock markets, U.S. recession risks, and worries investments funded by a cheap yen were being unwound.
Khoon Goh, head of Asia research at ANZ, noted that the Nikkei also rebounded to varying degrees after the three previous occasions when it experienced double digit declines, including in the wake of the global financial crisis in 2008 and Tohoku earthquake in 2011.
“But it took a while before the Nikkei clawed back all those losses,” he said.
From July 11 to Monday’s close of 31,458.42, the Nikkei has seen 113 trillion yen ($792 billion) wiped off that peak market value.
