Asian stocks clawed back some of the previous day's heavy losses today amid data showing Japan's economy grew faster than expected in the first quarter and by a pause in oil price rises.
European shares were expected to rebound slightly from 2004 lows at the start of trade.
The dollar eased a touch against the yen but firmed on the euro. Gold was lower and US Treasuries were flat in Asia trade.
Indian shares bounced back from their biggest one-day loss yesterday, as investors returned cautiously despite concern over the new leftist-backed government's commitment to economic
reform.
Tokyo's Nikkei average closed up 1.96 per cent at 10,711.09 after tumbling 3.18 per cent yesterday to a three-month closing low. The banking IBNKS.sub-index was up 5.4 per cent, led by Mizuho Financial Group, which jumped 7.8 per cent.
Stock markets had been pummelled around the world yesterday amid nagging fears that soaring oil prices and higher interest rates could choke economic growth. The killing of an Iraqi leader in a car bombing added to market jitters over oil prices and political tensions in the Middle East.