Global stock markets rebounded on Tuesday after three days of sharp losses wiped trillions of dollars off share valuations, as hopes emerged that Washington may be open to trade negotiations. However, investor sentiment remained fragile amid persistent tariff tensions. Asia led the recovery, with Japan's Nikkei closing 6 per cent higher following reports that US Treasury Secretary Scott Bessent would lead trade talks with Tokyo. European shares climbed more than 1.5 per cent from 14-month lows, while US futures pointed to gains after Wall Street hit a one-year low on Monday. US 10-year Treasury yields steadied following their sharpest one-day rise in a year, and the dollar remained under pressure, dropping 0.6 per cent to 146.91 against the yen. The euro rose to $1.0923 and sterling to $1.2749. Volatility remained high, with the VIX index hovering around 42 points, down from Monday's spike above 60. In Asia, Taiwan's benchmark index slumped 4 per cent, and Thai and Indonesian stocks fell 5 per cent and 8 per cent, respectively, after returning from holidays. In China, markets edged up following state-backed share purchases, but the yuan briefly hit a two-month low at 7.3595 per dollar before recovering. Oil prices held near four-year lows despite modest gains, with Brent crude at $64.35 per barrel. Gold rose nearly 1 per cent to $3,010 per ounce, still below last week's record high of $3,167.57. While signs of possible US flexibility lifted sentiment, President Trump maintained pressure on Beijing, threatening an additional 50 per cent in tariffs unless retaliatory measures were withdrawn. Beijing said it would not accept "blackmail." Meanwhile, the European Union offered a zero-tariff deal but also prepared countermeasures. Analysts warned that markets may stay volatile due to erratic policy signals. Attribution: Reuters Subediting: M. S. Salama
