Tokyo - Tokyo stocks rebounded Tuesday from a 26-year low as the yen fell against the dollar and euro, investors hunted for bargains and the government instituted new restrictions on short selling.
The benchmark Nikkei 225 Stock Average soared 459.02 points, or 6.41 per cent, to close at 7,621.92, nearly erasing all of its 486.18-point loss from Monday.
The broader Topix index of all first-section issues also was up 37.57 points, or 5.03 per cent, at 784.03.
The gains ended a four-day losing streak, which wiped out nearly a quarter of the Nikkei's value.
The day began on a sour note, as the Nikkei briefly dropped below 7,000, but investors returned to the market to buy up stocks trading at historic lows.