Japanese shares rebounded on Tuesday after plunging on Monday and sending shockwaves through global financial markets.

The Nikkei 225 stock index jumped by 10.23%, or 3,217 points in its biggest one day gain in points.

In London, the FTSE 100 opened higher following the previous day's fall, while stock markets in Paris and Frankfurt also rose.

The sharp fall in Tokyo followed the Bank of Japan's decision to raise interest rates for just the second time in 17 years.

It sent the yen soaring against the dollar making Japanese stocks - and the country's exports - more expensive for foreign investors and buyers.

Jesper Koll, executive director of Monex Group Japan, said he still had confidence in the country's stocks despite Monday's big falls.

"Japan’s fundamentals are strong, recession risks are nil, and corporate leaders are dead-set on raising capital returns," he told the BBC.

Shares in South Korea also regained some ground on Tuesday. The Kospi stock index rose 3.5% after falling 8.8% on Tuesday - its worst trading session since the global financial crisis of 2008.

Taiwan's main stock index jumped almost 3.4%, after a record 8.4% drop on Monday.

The news comes after share prices tumbled globally on Monday.

In New York, the technology-heavy Nasdaq index opened 6.3% lower but those losses eased during the day and the index ended the session down 3.4%.

The S&P 500 fell 3% and the Dow Jones Industrial Average was 2.6% down by the end of trading on Monday.

In Europe, the CAC-40 in Paris trimmed earlier losses to end 1.4% lower while Frankfurt's DAX and the UK's FTSE 100 lost about 2% each.

Weak jobs data in the US on Friday sparked concerns about growth in the world's largest economy.

It also stoked speculation about when, and by how much, the Federal Reserve will cut interest rates.

“Markets are very volatile at the moment and will likely stay volatile until the Fed decision in September. So we wouldn't rule out rapid swings in both directions,” said Stefan Angrick, a senior economist with Moody's Analytics.

There are also concerns that shares in big technology companies, particularly those investing heavily in artificial intelligence (AI), have been overvalued and are now facing difficulties.

Last week, chipmaker Intel announced major layoffs, as well as disappointing financial results.

There is also speculation that rival Nvidia, which has been one of the main beneficiaries of the boom in demand for AI technology, will delay its latest product launch.