Japanese stocks at a seven-year-high, 7.7% higher

Japanese stocks went off the roof Wednesday as the country's Nikkei Index closed at 7.7% higher, or more than 1,000 points, the highest it has been since 2008.

ABC News reported that other Asian markets also went up by 2 to 4 percent. These strong gains come after the stocks' chaos that has been affecting the market since June. The stock market turmoil is primarily due to the drastic sell-off in Chinese shares. According to Singapore-based IG market strategist Bernard Aw, "Bouyant sentiments were in full display across Asia as regional bourses flashed green."

However, according to the Financial Times, the rally in Japan stocks is a bit mysterious. Some of the major ideas on the gain are Japanese Prime Minister Chinzo Abe's statement that conference taxes will be cut 3.3 percent in 2016. Another is the promise of China's Ministry of Finance to take proactive measures to stimulate the economy. Last is the World Bank's warning that the Federal Reserve may increase interest rates earlier than expected.

Meanwhile, Business Insider reports that the US stocks reopened Tuesday after a long weekend and went up more than 2 percent across the board, as the Dow gained more than 390 points.

According to Press TV, European stock markets opened higher by 2 percent along with Asian market gains. During the opening, the pan-European STOXX 600 gained more than 2 percent. London's FTSE 100 index rose more than 1.6 percent, the German DAX went up 2.1 percent, and the French CAC increased over 2.2 percent.

Besides these markets, major Wall Street stocks also gained more than 2 percent overnight. As the Chinese stocks stabilized, global markets rallied. According to analysts, the cause of the Chinese stock market crash could be due to the bursting of a stock market bubble triggered by official media and was heighten by borrowed money.