Global equities staged a big rebound led by Asian and US markets as a sharp fall in the Japanese yen infused bargain-hunting for risky assets and offset grim US economic data.

The improvement in investor risk appetite also extended to emerging market assets – which have come under severe pressure lately – as the yen registered sharp declines against its leading rivals amid talk of currency intervention and even a possible rate cut by the Bank of Japan. Ashraf Laidi, chief currency strategist at CMC Markets, said: “Yen-selling intervention would not be successful as long as Japan does not cut interest rates.”