In Japan, where the losses Monday were largest, stocks bounced higher. The Nikkei 225 index rose 11 percent after plunging 12.4 percent the day before. That was the benchmark index's biggest one-day point decline, larger than the plummet during the Black Monday crash in October 1987.
Stocks in South Korea, which were also down more than 10 percent at one point on Monday, regained about 4 percent. The jolt to stock markets started last week in Japan, where worries about the state of the U.S. economy were compounded by concerns about the effects a rapidly strengthening yen would have on corporate profits.
More widespread panic took hold on Monday over fears that the Federal Reserve may have waited too long to start cutting interest rates, threatening the strength of the U.S. economy. The Fed is expected to start cutting rates, which are at a more-than-two-decade high, later this year.
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