Japan's key Nikkei 225 stock average rebounded Tuesday after a 4,500-plus-point tumble over the past three trading days amid market mayhem caused by U.S. President Donald Trump's tariff policy.

The index for major shares on the Tokyo Stock Exchange ended Tuesday's session at 33,012.58, up 1,876 points, or 6.02%, from Monday, when it suffered its third-biggest daily point loss of over 2,600 points to mark its lowest finish since October 2023. The broader Topix closed up 6.26%, or 143.36 points, at 2,432.02. The moves in both gauges were the biggest increase since August.

While uncertainties over the Trump tariff policy continued to weigh on the market, Tokyo stocks rose across the board.

After rebounds of some U.S. stocks overnight, risk aversion eased somewhat in Tokyo, leading to buybacks, brokers said, pointing to the yen's weakness as another favorable factor.

Market players viewed as "positive" the telephone talks between Prime Minister Shigeru Ishiba and Trump on Monday night to discuss the U.S. tariffs, an asset management company official said.

"We can at least see U.S. government readiness to negotiate with other countries," a major brokerage house official said.

Kazuhiro Sasaki, head of research at Phillip Securities Japan, said that there had been "a feeling that the market was oversold" a day earlier, "and investors were looking for a catalyst to buy back in."

Ishiba’s call with Trump, and U.S. Treasury Secretary Scott Bessent’s subsequent comments that Japan may be a priority in tariff negotiations, have been taken as a sign that "talks are moving in the right direction,” said Sasaki. This is giving investors some security and fueling a rebound in shares.

Exporters like electronics makers contributed most to the Topix’s rise, with the move boosted by the yen’s recent weakness against the dollar. The Japanese currency declined in the previous two sessions and was 0.3% stronger at ¥147.47 per dollar on Tuesday. Hitachi’s shares rose as much as 15%.

Banking stocks also climbed, with the Topix’s banking subindex rising by more than 11%. Mitsubishi UFJ Financial Group gained as much as 13%, the most since Aug. 6, when the market rebounded from a rout triggered by an unforeseen Bank of Japan rate hike. Mizuho Financial Group and Sumitomo Mitsui Financial Group also rose over 11% Tuesday.

Japan’s benchmark 10-year bond yield climbed around 15 basis points to 1.25% as the risk-off mood eased on hopes negotiations might soften the economic blow of tariffs.

But the asset management company official said that it may take at least a month before the Nikkei average returns to levels before the recent plunge, citing "uncertainties surrounding the economy and business results."

In a move that could further provide a boost for stocks, Trump assigned two members of his Cabinet to kick off bilateral trade talks after the call with Ishiba. Japan appeared set to get priority over other U.S. trading partners in talks on tariffs, putting Tokyo at the head of a long queue of nations seeking to roll back the levies.

Trump made a string of comments Monday about his planned duties on worldwide trading partners. Yet the president offered little clarity about what he is seeking in exchange for lowering duty rates — or whether he’s willing to offer relief at all.