Shares in South Korea were also regaining ground on Tuesday. The Kospi stock index was up nearly 5% after falling 8.8% on Tuesday – its worst trading session since the global financial crisis of 2008.

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.