Investing.com– Most Asian stocks rose sharply on Tuesday after clocking steep losses in the prior session, with Japanese markets recovering the most after tumbling into a bear market.
An element of bargain buying also aided regional markets, as traders piled into heavily discounted stocks with strong fundamentals, and which are likely to benefit from lower interest rates in the coming months.
But Asian stocks were nursing steep losses from the prior session, which were sparked by growing fears over a U.S. recession after underwhelming labor market readings.
Wall Street tumbled in overnight trade, with the NASDAQ Composite entering correction territory from recent peaks.
Still, U.S. markets also appeared to be due for a rebound, with Wall Street futures rising in Asian trade.
Japanese stocks rebound from bear market; Nikkei up 10%
Japanese stocks were by far the biggest gainers on Tuesday, having fallen much more sharply than their peers in recent sessions. The Nikkei 225 index rose over 10%, while the TOPIX added 8.8%.
Both indexes still remained in bear market territory after tumbling between 12% and 14% in the prior session.
A rebound in Japanese markets came despite mixed wage and spending data for June. While overall wages rose, household spending contracted from a year ago.
A drop in the yen- after the currency surged to its strongest level in seven months- also aided Japanese stocks.
Sentiment towards Japanese markets was dented by hawkish signals from the Bank of Japan, after the central bank raised interest rates and flagged more increases this year.
