Tokyo, which suffered a record loss Monday, led the gains as it surged more than 10% as traders bought beaten-down stocks caught up in a volatile day for markets

Most equities rallied Tuesday after the previous day’s global rout fuelled by US recession concerns that have led to calls for the Fed to cut interest rates before its next meeting.

Tokyo, which suffered a record loss Monday, led the gains as it surged more than 10% as traders bought beaten-down stocks caught up in a volatile day for markets.

But analysts cautioned that there would likely be more volatility to come.

The sell-off followed data Friday which showed fewer US jobs than expected were created last month, while another report pointed to continuing weakness in the manufacturing sector.

That led to warnings the Federal Reserve had kept rates at more than two-decade highs for too long and risked causing a recession.

Some analysts pointed to the “Sahm Rule,” which says an economy is in the early stages of recession if the three-month moving average of unemployment is 0.5 percentage points above its low over the previous 12 months. That was triggered by Friday’s data.

Commentators also said a stronger yen had led investors to unwind their “carry trades”, in which they borrowed in the cheap Japanese currency to invest in higher-yielding assets, such as equities.

Tokyo’s Nikkei, which dipped more than 12% Monday and suffered a record points loss, climbed 10.2%.

Toyota was more than 12% higher, Sony gained more than 9% and chip giant Tokyo Electron advanced 16.6%.

This is a sweeping, across-the-board gain, said analysts at Nomura, adding that investors would also pay close attention to the forex market.

Shanghai, Sydney, Seoul, Taipei, Mumbai, Bangkok and Manila also gained but Hong Kong gave up early gains to stand marginally in the red.

Singapore and Wellington also suffered more selling.

London edged up after declining nearly 2% on Monday, while Paris and Frankfurt were also up.