The benchmark Nikkei 225 index rebounded sharply on August 6 after its worst drop in history.     

The Nikkei average closed up 3,217.04 points from the previous day at 34,675.46 on Tuesday.    

The gain was the largest ever, surpassing the previous largest gain of 2,676 points in October 1990.     

The rebound came following Nikkei’s worst drop in history on August 5, where the benchmark fell 4,451.28 points to 31,458.42 on August 5. The Nikkei had dropped by more than 7,000 points in five days since August.    

The volatility comes following the Bank of Japan’s announcement last week to raise interest rates to 0.25 percent from the previous 0 to 0.1 percent.    

Investors believe that the unstable market will continue depending on the movement of the Japanese yen and the U.S. economy.