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Tokyo stock market plunges in historic sell-off amid U.S economic concerns

The dramatic downturn followed the release of disappointing U.S. jobs data for July, which revealed nonfarm payrolls significantly below market expectations and an increase in the unemployment rate. The weak data triggered concerns about a potential hard landing for the U.S. economy, spurring a global sell-off in equities. On Friday, the Dow Jones Industrial Average had already experienced its largest decline of the year, closing down 610 points.

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Nikkei rebounds as Wall Street gains and tech stocks surge

The Nikkei's rally was prompted by Wall Street's positive turnaround on Friday, which saw major indices climb as investors returned to technology giants that had previously experienced significant sell-offs. Additionally, favorable U.S. inflation data has heightened hopes that the Federal Reserve may soon start reducing interest rates, further boosting investor confidence.