Japanese stocks rebounded at the open on Tuesday in the wake of Monday’s historic sell-off after the US said would start trade negotiations with Asia’s second-largest economy.

The country’s Topix benchmark rose 5.5 per cent in early trading while the futures of the exporter-oriented Nikkei 225 were up over 5 per cent.

On Monday the Topix plummeted 7.8 per cent after a weekend during which the Trump administration gave no indication of backing down from its sweeping new tariff regime.

But on Monday afternoon, US Treasury secretary Scott Bessent said in a post on X that he had been asked by President Donald Trump to open negotiations with Japanese Prime Minister Shigeru Ishiba and his cabinet.

“Japan remains among America’s closest allies, and I look forward to our upcoming productive engagement,” Bessent wrote.