Meanwhile, the yen strengthened 0.6% to 146 against the US dollar, after losing nearly 2% on Tuesday and Wednesday combined.
But those fears, as well as a further jump in the value of the yen, are still haunting the market.
The volatility in the yen, which was at the heart of recent market turmoil, remains elevated, he added.
On Monday, the Nikkei plummeted by the most since 1987, sparking a broader global market sell-off.
The narrowing of the interest rate differentials, which had enabled the yen carry trade, could push the yen higher, Kuptiskevich added.
Persons:
Hong Kong CNN —, Germany’s DAX, Shinichi Uchida, Uchida, ”, Stephen Innes, Alex Kuptsikevich, Masamichi Adachi, Innes, Taiwan’s Taiex, Hang
Organizations:
Hong Kong CNN, Nikkei, CAC, Nasdaq, Bank of Japan, Federal Reserve, FxPro, Federal, Fed, UBS, UBS Chief Investment, Kospi, Hang Seng
Locations:
Hong Kong, Europe, Japan, unwind