Hong Kong CNN  —  Japanese shares soared in early trading on Tuesday, clawing back some of their record losses from the previous day and underpinning a regional rally. The Nikkei 225 last traded about 11% higher, while South Korea’s Kospi rebounded by 4.2%. Hong Kong’s Hang Seng Index rose 1%. They all suffered major losses during the previous trading session. On Monday, the Nikkei closed down 12.4% in its largest one-day fall since October 1987. It lost 4,451, its biggest point drop in history. The plunge triggered a global market rout. All major Asian, European and US markets fell substantially. Three fears are emerging all at the same time to send markets into a tailspin Monday. NDZ/STAR MAX/IPx/STRMX/AP Related article Why the stock market is freaking out again Growing worries about a recession in the US economy and the rapid unwinding of popular carry trades involving the yen had sent the markets into a tailspin. The surge in the yen, which started with the Bank of Japan signalling a hawkish tilt in monetary policy in recent weeks, forced many market participants to quickly unload the yen carry trades. On Monday, the yen hit a seven-month high against the US dollar at around 143. It pulled back slightly on Tuesday, down 0.8% to 145. This is a developing story and will be updated.