Japanese stocks bounced back on the day after heavy losses

Japanese stocks rebounded in early morning trading on Tuesday after entering Monday in a rout that sent shockwaves through global financial markets.

The Nikkei stock index was trading more than 8% higher after falling 12% the previous day.

Yesterday’s markets took a hit after the Bank of Japan’s second rate hike in 17 years sent the yen higher against the dollar, making Tokyo stocks – and Japanese goods in general – more expensive for foreign investors and buyers.

Stocks in the US and Europe also fell on Monday on fears that the US economy is about to slow down.

Earlier in New York, the tech-heavy Nasdaq index opened 6.3% lower but pared those losses during the day and the index ended the session down 3.4%.

The S&P 500 was down 3% and the Dow Jones Industrial Average was down 2.6% in late trading on Monday.

In Europe, the CAC-40 in Paris pared earlier losses to end 1.4% lower while Frankfurt’s DAX and the UK’s FTSE 100 fell around 2% each.