The Japanese market is clawing its way back, after an epic tumble overnight.

Its Nikkei had a historic one-day drop - the first in a volatile chain of global financial markets.

It's now starting to stabilise, sitting about nine percent up on yesterday.

Matt Goodson from Salt Funds Management says Japan's weakness began a couple of days ago, when the central bank hiked up cash rates.

"The Japanese market had been pretty strong all year, the yen had been really weak - and that just turned everything around, the market fell hard, the yen really strengthened."

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