João da Silva
Business reporter
Japanese shares have rebounded in early Tuesday morning trade after plunging on Monday in a rout which sent shockwaves through global financial markets.
The Nikkei stock index was trading more than 8% higher after slumping by over 12% the previous day.
Yesterday’s market rout came in the wake of the Bank of Japan’s second rate hike in 17 years which sent the yen soaring against the dollar making stocks in Tokyo – and Japanese goods in general – more expensive for foreign investors and buyers.
Stocks in the US and Europe also fell on Monday due to fears that the American economy is heading for a slowdown.
Earlier in New York, the technology-heavy Nasdaq index opened 6.3% lower but those losses eased during the day and the index ended the session down 3.4%.
The S&P 500 fell 3% and the Dow Jones Industrial Average was 2.6% down by the end of trading on Monday.
In Europe, the CAC-40 in Paris trimmed earlier losses to end 1.4% lower while Frankfurt’s DAX and the UK’s FTSE 100 lost about 2% each.
