TOKYO (Reuters) - Japan's Nikkei average soared more than 9 percent on Tuesday, rebounding after its worst one-day loss since the 1987 stock market crash, on international government pledges to pour cash into struggling banks and restore confidence in the global financial system.
Trade in NIKKEI (NIKKEI225.)futures trading on the Osaka bourse and Topix futures trading on the Tokyo bourse were halted early on Tuesday after a circuit breaker was triggered.
Mitsubishi UFJ Financial Group <8306.T> shares rose amid a flood of buy orders after it completed a $9 billion investment in Morgan Stanley
"We're seeing a wave of short-covering here, but it's hard to see how far the rebound will go," said Masayoshi Okamoto, head of dealing at Jujiya Securities. "It's not just Wall Street, the dollar's gains against the yen are also really helping to power things."
At 0028 GMT the benchmark Nikkei <.N225> was up 9.7 percent at 9,074, with gains of nearly 800 points. The broader Topix <.TOPX> was up 9.3 percent at 918.84.
The Nikkei had its biggest one-day loss in percentage terms on Friday since 1987. Japanese markets were closed on Monday for a holiday.
(Reporting by Elaine Lies)
