Volatile market conditions set off a circuit breaker for Nikkei futures earlier. Equity benchmarks tumbled 12% on Monday in a broad flight from risk amid a stronger yen, tighter monetary policy and concern over the US economy’s outlook.
Japanese stocks surged after their plunge into a bear market during the previous day’s trading brought them down to key technical levels.
The Nikkei 225 Stock Average and Topix rebounded more than 8%, the most since October 2008, as exporters such tech companies and automakers surged after the yen slumped about 1% against the dollar. Banks as a sector soared 10%, after tumbling 17% on Monday. All 33 of the Topix industry gauges climbed.
