The Nikkei 225 stock index increased by 10.23%, or 3,217 points, marking its largest one-day rise in points.
The FTSE 100 in London opened higher after falling the day before, while major markets in Paris and Frankfurt also climbed.
Tokyo fell sharply following the Bank of Japan’s decision to raise interest rates for the second time in 17 years.
It pushed the yen higher against the dollar, making Japanese equities and exports more expensive for overseas investors and buyers.
Fears that the American economy is slowing have weighed on equities in the United Kingdom, Europe, and the United States.
Despite Monday’s sharp drop, Jesper Koll, executive director of Monex Group Japan, expressed confidence in the country’s stock market.
“Japan’s fundamentals are strong, recession risks are nil, and corporate leaders are dead-set on raising capital returns,” he shared with the news.
South Korean stocks also regained ground on Tuesday. The Kospi stock index increased 3.5% after losing 8.8% on Tuesday, its worst trading performance since the global financial crisis of 2008.
