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

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)