Global stock markets experience significant rebound

(MENAFN) Global stock markets experienced a significant rebound on Tuesday, with Asian and European indices bouncing back after suffering their most substantial declines since the 2008 financial crisis. The recovery came as investors seized opportunities amidst heightened concerns over a potential United States recession and escalating tensions in the Middle East, which had triggered a widespread sell-off across major equity markets.

In Asia, Japan's Nikkei index led the recovery, surging more than 8percent at the opening bell after plummeting 12.4percent the previous day in its sharpest decline since the 1987 Black Monday crash. By mid-morning UAE time, the Nikkei remained strong, posting a remarkable 10.42percent gain. Hong Kong's Hang Seng index and India's BSE Sensex also showed resilience, edging slightly higher by 0.1percent and 0.7percent respectively.

The MSCI Asia Pacific Index mirrored this resurgence, climbing as much as 3.9percent, marking its most substantial single-day gain since November 2022. The index had slumped more than 6percent just a day earlier, illustrating the volatility and rapid shifts in market sentiment.

Technology-heavy markets in South Korea and Taiwan also contributed to the positive trend, registering gains on Tuesday following the previous day's turmoil. Analysts attributed the sharp rebound to market corrections and opportunistic buying after what was deemed an overly pessimistic reaction to recent economic and geopolitical uncertainties.

Rupal Agarwal, Asia quantitative strategist at Sanford C Bernstein, noted that Monday's market reaction appeared excessive, fueling Tuesday's robust recovery. She emphasized the expectation of continued market volatility, advising investors to consider defensive strategies focused on quality stocks or those offering stable dividends.

Meanwhile, in Europe, major indices also showed signs of recovery early in the trading session. London's FTSE 100 and Paris's CAC-40 were up by 0.4percent, while Germany's DAX saw a more substantial rise of 0.9percent. The positive momentum in European markets echoed the cautious optimism seen in Asia, reflecting a broader sentiment shift among global investors.

As markets continue to recalibrate in response to ongoing economic data and geopolitical developments, the resilience displayed on Tuesday suggests a degree of confidence returning to global equities. However, analysts caution that volatility may persist amid lingering uncertainties, urging investors to remain vigilant and consider diversified investment strategies to navigate potential fluctuations in the weeks ahead

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