By lunchtime, the important Nikkei 225 index had risen by 9.5 percent – while the broader Topix index was up 9.3 percent.
It's a completely different tone than on Monday, when the Nikkei 225 index fell over 12 percent at closing. It was the largest drop since the so-called "Black Monday" in 1987 when Nikkei fell 14.9 percent.
This was followed by large drops on stock exchanges in Europe and the USA.
Since the extent of Japan's stock market decline yesterday turned out to be much larger than in Europe and the USA, the market now realizes that the Japanese market correction yesterday was exaggerated, says Tomo Kinoshita, global market strategist at asset manager Invesco in Tokyo, to Bloomberg, about the sudden surge.
