Japanese stocks rebound strongly, with the benchmark index closing at its biggest gain since October 2008
On August 6th, following the bear market on Monday, the Japanese stock market rebounded strongly on Tuesday. The Nikkei 225 Index and the TOPIX Index rebounded nearly 10%, marking the largest increase since October 2008. Export stocks such as technology companies and automakers soared after a drop of about 1% in the yen against the US dollar. The significant volatility in the stock market triggered the circuit breaker mechanism for Nikkei Index futures, while the implied volatility of the index also fell from its highest level since 2008.
Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, said, "Panic selling may have ended, but today's market trend may still be a roller coaster ride as global market anxiety remains high."
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