(Adds quotes)

Aug 6 (Reuters) - Asian share markets rebounded on

Tuesday reversing a historic sell-off after central bankers

sought to calm investor fears.

Japan's Nikkei rallied 9.4% as of the midday break,

after plunging 12% on Monday in its biggest one-day percentage

drop since October 1987.

Currency markets remained on edge, with the yen down 1%

after rising for five straight sessions to a seven-month high on

Monday.

QUOTES

VASU MENON, MANAGING DIRECTOR OF INVESTMENT STRATEGY, OCBC,

SINGAPORE

"At this juncture, it is too early to call the market bottom

given multiple moving parts and the momentum of selling.

However, the key question to ask would be whether the economic

and earnings outlook has changed materially and for now, it's

too early to jump the gun. We will have to monitor economic data

in the coming weeks to see if recession fears are indeed

warranted.

"With stock markets plunging around the world, traders are

talking up the prospect of an emergency interest-rate cut from

the Fed after it passed up the opportunity to ease policy last

week. This seems unlikely. The market sell-off is due to an

unwinding of yen carry trades and AI concerns and not because

the U.S. economy is broken and in dire straits. So, there is no

reason for the Fed to step in and mitigate losses for equity

investors."

CHARU CHANANA, HEAD OF CURRENCY STRATEGY, SAXO, SINGAPORE

"There seems to be some calm in the markets, probably

because the selloff was too fast. Perhaps markets could reassess

its calls for an intermeeting rate cut from the Fed without

anything having broken really.

"However, recession concerns will likely remain easy to

trigger as the U.S. growth slowdown broadens, and the market

will likely remain fragile as it continues to look for some sort

of a response from the Fed."

RAY SHARMA-ONG, HEAD OF MULTI-ASSET INVESTMENT SOLUTIONS FOR

SOUTHEAST ASIA, ABRDN, SINGAPORE

"Fundamentally, nothing significant has changed for the

Japanese economy. It is the unwinding of the carry trade driving

a lot of the momentum sells.

"The Japanese market tends to overshoot on the downside

during periods of aggressive selling. Over the past 10 years,

there were three corrections where the TOPIX sold off more than

-10% (May 2013, Jan 2014, Sep 2014), with the market recovering

shortly after each."

MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE

"The Nikkei's enjoying a decent retracement against Monday's

plunge, as comments from the Fed's (Mary) Daly and a

stronger-than-expected ISM services report soothed fears of a

panic Fed cut next week. But this is not exactly a risk-on

rally. And we're not yet sure if this is just a breather between

water-boardings or there is more pain to follow.

"But with the VIX futures curve in backwardation, I suspect

price action to remain choppy and fickle until the dust truly

settles. And with so many burned fingers to contend with, it is

hard to see a risk-on rally materialising any time soon. Right

now, a pause will do."

RON SHAMGAR, HEAD OF AUSTRALIAN EQUITIES, TAMIM ASSET

MANAGEMENT, SYDNEY

"My view is that this market turmoil is mostly driven by the

yen carry trade being partly unwound. That's happened on the

same day where U.S. jobs numbers came in slightly weaker than

expected and a potential imminent attack by Iran on Israel.

"Combine those factors with a market that so far hasn't seen

the usual and bi-annual pullback or correction of 5-10% this

calendar year - and you had a so-called rug pull. We think

volatility will persist over the next few weeks and stock prices

direction will be dictated by the upcoming results season in

Australia and the U.S. during late August."

GARY NG, SENIOR ECONOMIST FOR NATIXIS, HONG KONG

"It is hard to say the worst is behind us ... pressure might

linger a little bit."

"There are many moving parts, with three key concerns come

from the outlook of the U.S. economy, the unwinding of

investors' trades in Japan and geopolitical risks in the Middle

East ... particularly the last one, which has not been fully

realised for now. As for the U.S. recession outlook, we see some

sectors in the economy like consumption still holding up, and

datasets in the coming weeks might come out not as bad as the

surface looks, and it may help stabilise things."

ANDREW JACKSON, HEAD OF FIXED INCOME, VONTOBEL, LONDON

"Last week's soft U.S. jobs data has continued to wreak

havoc across markets, with many asset classes, sectors and

regions suffering major declines. The first step of this price

correction was in line with our expectations based on the recent

data; but we are likely now entering an overshoot territory.

"That said, the fact remains that markets are generally

still at or near highs, so the severity of the correction

remains unclear. Corporate bonds remain well insulated from the

market shock, so any outflows, which could be a catalyst for

further declines in already stressed markets, are likely to be

muted and we even see a possibility for inflows."

ROB ALMEIDA, GLOBAL INVESTMENT STRATEGIST AND PORTFOLIO

MANAGER, MFS INVESTMENT MANAGEMENT, BOSTON

"It is hard to know what the stress point for the sell-off

was. We think it's a combination of many factors that have led

to too many leveraged trades heading for an exit that can't fit

all of them.

"Many wonder whether the market is overreacting. Price is

what you pay and value is what you get. The price of risk assets

was too high and value (i.e., returns on equity) we believe was

below what people have been expecting. Volatility is the market

adjusting for incorrect assumptions, which brings us back to the

prior question, the market's expectations about incomes, we

think, was too high. While profits or earnings have yet to

crash, markets discount it before it happens via tangential

evidence - which is perhaps what it got last week."

(Compiled by the Global Finance & Markets Breaking News team)