Nikkei 225 Skyrockets as Asian Markets Stabilize Amid Global Economic Concerns

Japan's Nikkei 225 index surged over 10% early Tuesday, settling at an 8.7% increase after a tumultuous Monday for global markets. The surge followed significant losses in Europe and Wall Street due to concerns about U.S. economic slowdown and high interest rates. South Korea's Kospi and other Asian indices also experienced significant fluctuations.

Japan's benchmark Nikkei 225 index soared more than 10% early Tuesday, rebounding from Monday's market turmoil that rattled Europe and Wall Street. Asian markets appeared to stabilize after a rollercoaster start to the week, which saw the Nikkei ending 8.7% higher at 34,211.83 as investors snapped up bargains following a 12.4% plunge the previous day.

On Monday, the S&P 500 dropped 3%, marking its worst day in nearly two years, while the Dow Jones Industrial Average fell by 1,033 points or 2.6%. The Nasdaq composite slid 3.4%, impacted by significant declines in Big Tech companies like Apple and Nvidia, which have seen their fortunes wane after previously leading the market's rally.

Professional analysts warned that technical factors might be amplifying market volatility. Despite this, losses were widespread, with South Korea's Kospi dropping 8.8% and even traditionally safe assets like gold slipping by about 1%. Early Tuesday saw a partial recovery: Hong Kong's Hang Seng index rose 1.1%, and Taiwan's Taiex and Australia's S&P/ASX 200 edged higher. U.S. economic data pointing to slower hiring and concerns about prolonged high interest rates added to investor fears, although some suggested the situation might be overblown.

(With inputs from agencies.)