TOKYO: Japan’s Nikkei rebounded strongly from a three-month low on Tuesday, as investors cheered a rise in US stock futures and scooped up beaten-down cyclical shares.

The Nikkei stock average ended the day up 1.84% at 26,246.31, after gaining as much as 2.5% during the session.

At the start of the week, the benchmark index had dipped to a low of 25,520.23 for the first time since March 16. The rally was broad-based, with 213 of the Nikkei’s 225 components rising, while 10 fell and two traded flat.

The broader Topix advanced 2.05% to 1,856.20. US stock markets, which were closed on Monday for a holiday, looked set to rise, with S&P 500 e-mini futures last up 1.47%.

European stocks gained overnight, with the pan-European STOXX 600 index finishing 1.0% higher.

“You can call this a rebound in an oversold market, but the speed of the gains is creating some panic among the people who sold at the bottom,” said a market participant at a domestic securities company.

Cyclical stocks rebounded after Monday’s fall.

Japan Airlines and rival ANA Holdings rallied 3.42% and 2.88%, respectively.

Tech also had several big winners. Sony Group jumped 3.99%, while startup investor SoftBank Group advanced 2.88%.

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Chip-making equipment manufacturers Tokyo Electron and Advantest rallied ended 2.55% and 2.38% higher. Automakers were firm, with the yen hovering near its weakest level in more than two decades.

Toyota gained 2.35% and Nissan rose 3.23%. The best-performing sector on the Nikkei was energy, which rallied 3.74% amid higher crude oil prices.

Defensive utilities trailed, but were still higher by 0.59%.