Tokyo: Stocks surge 7% after record fall

TOKYO stocks bounced back in early trade on Tuesday following a historic selloff on worries over the US economy and a stronger yen.

The benchmark Nikkei 225 index jumped 7.39 per cent, or 2,324.26 points, to 33,782.68, while the Topix jumped 7.28 per cent, or 162.07 points, to 2,389.22.

On Monday, the Nikkei had closed down 12.40 per cent, or 4,451.28 points - its largest points drop in history.

“The market is seen starting sharply higher, as it should perform a natural rebound after yesterday’s plunge while dollar-yen moves towards the yen’s depreciation,” Monex said.

The brokerage said it expected nervous trade to continue with a focus on forex movements.

The yen weakened sharply to 146.01 against the dollar in early Asian trade, having surged on Monday to 141.73, a level not seen since early January. AFP