Japan stocks rebound sharply after worst rout in history in boost to Asia markets

Japanese shares rebounded on Tuesday, recovering most of their previous losses and contributing to a regional rally. The Nikkei 225 index and the broader Topix were both up by about 9%. South Korea’s Kospi and Taiwan stocks also saw gains after major losses in the previous trading session. The bounce back in Japan is seen as a typical response to a market crash, with experts stating that the fundamentals of the economy remain strong. The recent plunge in markets worldwide was triggered by concerns of a recession in the US economy and the unwinding of carry trades involving the yen. The Bank of Japan raising interest rates and plans to taper bond buying have added to uncertainties. However, experts remain optimistic about the Japanese economy, pointing to factors such as the first rise in inflation-adjusted real wages in more than two years.