Asian stocks rebound sharply following previous plunge

(MENAFN) Asian stock markets saw a significant rebound on Tuesday, bouncing back from a historic decline in the prior session. Leading the charge was Japan's Nikkei 225 index, which soared by 6.01% to finish at 33,008.50 points. This surge is attributed to growing optimism regarding potential prioritization in upcoming trade talks with the United States.

The positive mood in Japan was bolstered by US President Donald Trump's recent appointment of two Cabinet members to kickstart bilateral trade discussions after a dialogue with Japanese Prime Minister Shigeru Ishiba. Trump had earlier highlighted the trade imbalance in the automotive industry, remarking, "I said one thing. You're going to have to open up your country, because we sell no cars ‒ like zero cars ‒ in Japan, and they sell millions of cars into our country."

This development indicates that Japan might be favored over other US trading partners in tariff negotiations, placing Tokyo at the forefront of efforts to alleviate current tariffs.

Regionally, the Asia Dow, which monitors major blue-chip companies, increased by 3.44% to 3,737.96 points as of 0730GMT. Hong Kong's Hang Seng Index also experienced gains, rising by 1.01% to 20,029 points, following a record 13.2% drop in the previous trading session. Meanwhile, China's Shanghai Stock Exchange gained 1.58%, closing at 3,145.55 points, and India's Sensex index advanced by 2.15% to reach 74,712.50.

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