Financial markets regained some poise today after recent unsettled days, but investors were still skittish about US economic growth despite overnight Wall Street gains.
European stocks rose on upbeat corporate earnings, while euro zone government bond prices were flat to lower.
The dollar slipped against the yen as investors unwound some risky currency positions and Japanese shares closed down.
MSCI's main world stock index was up slightly, but its emerging market counterpart was off a third of a per cent, bringing year-to-date losses to nearly 2.3 per cent.
Gains on Wall Street overnight - where the S&P 500 gained 0.56 per cent after losing nearly 3.5 per cent on Tuesday - and comments from Federal Reserve Chairman Ben Bernanke projecting moderate US growth calmed some nerves.
But they were not enough to ease fears in Japan and elsewhere in Asia about the impact of a US slowdown on exporters.
The Nikkei average dropped 0.86 per cent or 150.61 points to 17,453.51, the lowest close since February 8th. The benchmark fell 2.85 per cent yesterday, logging its biggest one-day fall in eight months.
European shares were having a more robust day, helped by upbeat corporate earnings.
The FTSEurofirst index of top European shares was up 0.6 per cent. It fell 1.6 per cent yesterday.