Asian shares rallied after the Bank of Japan’s deputy governor assured that interest rates would not be raised if markets remain unstable, alleviating investor concerns following a recent surge in the yen.
Japan’s Nikkei index closed up 1.8% at 35,300.63, recovering significantly from Monday’s steep losses, which marked its worst day since 1987, after soaring more than 10% on Tuesday.
Bank of Japan Deputy Governor Shinichi Uchida acknowledged the recent market volatility, stating that the BOJ’s rate policy would adjust if it affects the broader economic outlook.
South Korea’s Kospi surged 2.3% to 2,579.10, and Taiwan’s benchmark index jumped 3.6%. Both markets had been among the hardest hit in Monday’s sell-off due to their heavy concentration of technology stocks, which have experienced significant losses in recent weeks.
Hong Kong’s Hang Seng erased early losses and rose 1.6% to 16,917.49, while the Shanghai Composite index increased by 0.4% to 2,879.15.
Australia’s S&P/ASX 200 gained 0.8%, closing at 7,738.20.
In the U.S., the S&P 500 and Nasdaq 100 both climbed 1% on Tuesday, following a rebound in Asia led by Japan, recovering from the global market downturn.
Treasury 10-year yields increased by two basis points in Asian trading, reaching 3.89%, after a 10-basis-point jump on Tuesday.
