Japanese equities rebounded by as much as 10% on Tuesday, August 6, right after a historic plunge on Monday, the worst since Black Monday in 1987 the Nikkei 225 Index rose by 10.23% as of end day, while the Tokyo Stock Price Index Topix jumped by 9.3%.
A rout on Monday was closely linked to the Bank of Japan’s BOJ decision last week to raise its interest rate by 15 basis points bps to 0.25%, unwinding carry trades that used to benefit from the Japanese yen’s predictable stability, dampening previous investments into higher-yielding assets such as US equities.
On the other hand, there was weaker-than-expected US...
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