Markets regained some stability after high volatility the past two weeks. They had been hit by concerns the Fed will weaken a stimulus commitment that's boosted risk appetites, and then by speculation Friday's jobs data would disappoint and cause worries about the US economy.
Japanese stocks jumped nearly 4% on Tuesday amid reports of progress in containing radiation from an earthquake-damaged nuclear plant, and the yen was broadly softer on the possibility of further intervention by major central banks.
Billionaire investor Warren Buffett said on Monday that Japanese stocks were good investments after the deadly earthquake that hit the world's third-biggest economy last week.
Japan's Nikkei average rallied 4.4% on Wednesday after the worst two-day selloff since the 1987 crash, with some investors scooping up shares even as many fretted that a further deterioration in nuclear crisis could undermine the market.
World stocks hit 2-1/2 month lows on Tuesday and oil fell and the yen surged after reports of rising radiation near Tokyo triggered a 10% fall in Japanese stocks, hurting risky assets across the board.
Japanese stocks plunged 12% on Tuesday as the country is dealing with multiple crises. The economic impact on the quake-stricken country and the global market is yet to be construed. Veteran on the market pulse, N Jayakumar of Prime Securities, in an exclusive interview with CNBC-TV18 shares what the Japanese crises mean to capital markets.
Japanese stocks plunged 12% on Tuesday on reports of rising radiation levels near Tokyo and lurched towards their biggest loss since the 1987 crash, in a panic selloff likely to compound the economic impact on the quake-stricken country.
Japanese stocks fell 7.6%, on track for the biggest daily loss since October 2008, and bond yields rose on Monday as investors expected the earthquake and tsunami that devastated the country's northeast to take an economic toll and require heavy government borrowing.
The growing devastation in Japan may accelerate the short-term negative sentiment in a US equity market already seen as vulnerable, but ongoing weakness is likely to be confined to specific sectors.