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On Tuesday, the Nikkei 225 of Japan bounces from its five-week lows to close a bit higher. It came into effect after cyclical stocks gained over short-covering after the previous day’s sell-off. This sell-off was driven by increasing fears of a steep global economic slowdown.

On March 31, the business year is about to end for major Japanese companies. Investors underpinned the stock market by making out purchases of shares before going ex-dividend in the late day. On average, the Nikkei share closed 2.15 percent up at 21,428.39 following the biggest drop since December.

SoftBank Group Corp climbed 1.3 percent while adding 16 points to the Nikkei. It surged after Reuters announced that talks are going on between Toyota Motor Corp and the company over investing $1 billion in the Uber Technologies Inc’s self-driving vehicle unit. The index outperformed the Topix index, where it lost 0.2 percent to arrive at 1,588.29.

Analysts remarked that risk repugnance eased a bit following a slide on Wall Street, which had broken overnight. However, the fears over a U.S. recession still linger.

On Monday, the benchmark 10-year Treasury yields dropped to the lowest levels since December 2017. On the other hand, 10-year notes and three-month bills inverted more after investors keep on assessing the dovish pivot of the last week by the U.S. Federal Reserve. Here, an inverted curve indicates a sign of a U.S. recession.

Most exporters rebounded as Advantest Corp rose 1.9 percent, Panasonic Corp jumped 4.1 percent, and Yaskawa Electric was up by 2.4 percent. Shipping firms dropped, where Mitsui OSK Lines lost 0.6 percent and Kawasaki Kisen dropped 3.1 percent. Meanwhile, Nintendo Co gained 4.8 percent as the Wall Street Journal posted that the company prepares to launch new versions for the Switch gaming console early this summer.