Asian markets stabilised on Wednesday, with Japan’s Nikkei gaining almost 8% in its biggest one-day jump since late 2008.

The benchmark index closed up 7.71% at 18,770.51 points. A day earlier, the index closed down 2.4 percent, wiping out all gains made this year.

Investor sentiment was up after newly re-elected Prime Minister Shinzo Abe announced that company tax would be cut by 3.3 percent over two years, starting in April 2016.

Markets in China also showed positive signs, with the mainland share index, the Shanghai Composite, gaining 2.3 percent, and Hong Kong’s Hang Seng index adding 3.5 percent.

The FTSE reacted well to the upwards movement in Asia, jumping by more than 1.6% just after market open.