The Nikkei 225 index in Tokyo rebounded sharply on Tuesday, closing 10.23% higher after a record decline of over 12% the previous day due to global economic concerns and a stronger yen. This recovery was part of a broader rebound in Asian markets, with South Korea's Kospi and Hong Kong's Hang Seng also posting gains. The initial selloff was triggered by the Bank of Japan's surprise interest rate hike, weaker-than-expected US economic data, and the unwinding of yen carry trades, exacerbating volatility across global markets. Despite the turmoil, US equity futures showed signs of recovery as the Federal Reserve indicated potential measures to prevent a downturn. Market sentiment improved with positive data on US services and Japanese wages, though analysts predict continued volatility.