Tokyo's benchmark Nikkei stock index bounced back on Tuesday with its third-largest intraday gain on record. The rise follows reports Japan and the US are set to start tariff negotiations after the leaders of both countries discussed the issue on the phone.



The Nikkei 225 briefly gained 2,120 points or about 6-and-a-half percent from Monday, as investors placed buy orders across the board.



The index closed the day at 33,012, up 6 percent, marking a gain of 1,876 points. That's its fourth-biggest one-day increase.



This came after the benchmark posted its third-largest single-day drop the previous day. It fell 7.8 percent amid fears US tariffs imposed this month will erode earnings at Japanese companies.