News Desk

The Advocate Post: Japanese shares in the global market has rebounded on Tuesday, after plunging on Monday in a shocking rout in global financial markets. The Nikkei 225 stock index rose by 10% after it had gone down 12% percent in the previous day.

The rout on Monday came after the Bank of Japan’s second rate hike in 17 years, sending the yen soaring against dollars, making Japanese stocks and foreign exports more expensive for foreign investors and buyers. Monday also saw stock falls in the US, the UK and Europe, possibly due to fears that the American economy entering a slowdown.

South Korea also regained 5% on its stock index after falling by 8.8%, along with Taiwan, having a record drop of 8.4% on Monday, and regaining 1.5% in its trades on Tuesday. Earlier in New York, Nasdaq index opened 6.3% lower but losses easing to only 3.4%.

Both the S&P 500 and the Dow Jones Industrial Average was down by around 3% by the end of trading on Monday. In Europe, Paris’s CAC-40 trimmed losses to end 1.4% lower, while Frankfurt’s DAX and the UK’s FTSE 100 lost about 2% each. Weak statistics on jobs in the US ignited concern for the world’s largest economy. It also sparked speculation about the specifics of how the Federal Reserve will cut interest rates.

Senior Economist Stefan Angrick, said that the market is currently incredibly volatile and that, until the Federal decision in September, numbers will swing in both directions rapidly. Big technology companies which had greatly invested in artificial intelligence, have now been overvalued and facing several difficulties. More bad news follows as chip making company Intel announced major layoffs and disappointing financial results. Moreover, Nvidia, one of the main beneficiaries of the rise in demand for AI products, has been speculated to delay its latest product launch.