Most Asian shares edged up this morning as oil prices recovered from steep falls yesterday.
Japan's Nikkei earlier hit an 18-month low, however, as investor worries about a recession in the United States persisted.
The dollar steadied from last week's decline, while gold saw modest gains.
In Asia, MSCI's measure of Asia Pacific stocks excluding Japan rose 0.4 per cent by 6.21am after hitting a two-week low in the previous session.
The index has dropped 3 per cent this year, weighed down by data that raised investor fears of a US recession, including a weak employment report out last Friday.
Japanese bond futures also inched up to a one-month high, on expectations of further interest rate cuts by the Federal Reserve, but gains were limited ahead of an auction of 10-year JGBs tomorrow.
The Hang Seng rose 1 per cent, benefiting from strong gains for Hong Kong property developers, amid expectations that US rate cuts could boost demand for real estate shares.
Tokyo shares crept up 0.2 per cent - after earlier hitting an 18-month low.
European stocks were forecast to rise today according to financial bookmakers, with Britain's FTSE 100 seen 15-16 points higher and Germany's DAX gaining 13-21 points.