Japan's Nikkei 225 Rebounds a Day After Sinking by 12%

What We're Showing

A 5-day chart of the Nikkei 225 showing the turbulent performance of the index over the past few days.

Key Takeaways

• Japan's benchmark index recovered much of its losses in a dramatic turnaround
• Markets in Taiwan and South Korea also saw an upturn
• One reason for the market chaos is that the Bank of Japan recently raised interest rates, signaling the end of the 'cheap money era'. That move put the squeeze on the so-called yen carry trade, and investors exited their positions in the yen