Japan stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix dropped over 12% in the previous session. Other Asia-Pacific markets also opened higher.

Japan’s Nikkei 225 — which saw its largest loss in the previous session since the 1987 Black Monday crash — and the broad-based Topix gained as much as 10% before paring gains to 8%.

The Bank of Japan raising rates to their highest level since 2008 on July 30 caused the yen to strengthen to a seven-month high,…