Asian stocks clawed back some of this weeks losses on Friday after a solid set of U.S. data calmed turbulence in global financial markets, though underlying worries about slowing world economic growth kept investors on edge. MSCIs broadest index of Asia-Pacific shares outside Japan gained 0.2 percent, though it is likely to log its sixth straight week of losses with a fall of 0.5 percent so far this week. The positive mood did not last long in Japanese markets, however, where the Nikkei share average (.N225) fell 0.5 percent to 4-1/2-month lows. A possible recession in Europe, a floundering economy in Japan, a slowdown in China and the Ebola virus outbreak have all conspired to rattle investors, triggering tumult in financial markets and a bout of volatility not seen in years. U.S. stocks had another choppy session on Thursday but managed to stay above multi-month lows hit the previous day, with the S&P 500 Index (.SPX) ending flat. The Volatility index (.VIX), viewed as a gauge of investor fears, eased to 25.2 percent from a 2 1/2 year high above 31 percent hit on Wednesday. The U.S. dollar also recovered, with the dollar index stabilizing at 84.950 (.DXY), off a three-week low of 84.472 hit on Wednesday. The euro gave back some of Wednesdays gains on the greenback to be at $1.2811 (EUR=), off this weeks high of $1.2887.
Posted on: Fri, 17 Oct 2014 09:00:00 +0000