Asian stocks rebound after volatile session

SYDNEY, NSW, Australia-stocks in Asia were strong on Tuesday after the heightened volatility of the previous day.

The rebound in the British pound was triggered by the efforts of the UK government to cut taxes and provide other incentives to boost the economy, which was triggered by the cautious optimism elsewhere.

It is definitely something that is unfolding. Yuting Shao, a macro strategist at State Street Global Markets told Reuters on Monday that the market is only at a certain initial stage of seeing how the market digests that kind of information.

The tax cut plan is intended to stimulate growth and reduce household burdens, but it raises the question of what the implications are in terms of the monetary policies. In Japan, the Nikkei 225 jumped 140.32 points or 0.53 percent to 26,571. The Australian All Ordinaries added 29.00 points or 0.43 percent to 6,696. China's Shanghai Composite surged 42.64 points, or 1.40 percent, to 3,093. Now for the bad news. In New Zealand, the S&P NZX 50 plummeted 220.33 points or 1.93 percent to 11,214. The British pound was well ahead of the 103.27 low touched on Monday as it surged to 1.0809 by the Sydney close on Tuesday. The euro bounced up to 0.9661. The Japanese yen was up to 144.24. The Swiss franc increased to 0.9885.

The Canadian dollar was strengthened to 1.3653. The Australian dollar was only a fraction higher at 0.6496.

Overnight on Wall Street, the Dow Jones industrial averages lost 329.60 points or 1.11 percent to 29,260. The Nasdaq Composite lost 65.00 points or 0.60 percent to 10,802. The Standard and Poor's 500 fell 38.19 points, or 1.03 percent, to 3,655.