Bonds fell, the dollar strengthened and stocks were little changed on Wall Street today, although software giant Microsoft Corp , and other technology shares were snatched up by bargain hunters after a rout a day earlier.
In currency markets, the yen fell to a two-week low versus the dollar in the wake of a big decline in Japanese stocks which curbed demand for the currency and reignited concerns about the world's second-largest economy.
European stock markets ended higher, while on Wall Street technology stocks led the advance.
Investors ventured back into the technology sector after an almost 4 per cent drop in the tech-laced Nasdaq yesterday.
By this afternoon, the Nasdaq Composite Index climbed 9 points, or 0.72 percent, to 1,249. The broad Standard & Poor's 500 added 3 points, or 0.38 percent, to 842. The Dow Jones Industrial average fell 10 points, or 0.12 percent, to 8,177, after rallying almost 1 per cent and then dipping in and out of negative territory.
Tokyo's Nikkei average had earlier finished down more than 3 per cent to a five-month closing low. It fell victim to the intense nervousness on Wall Street earlier, as foreign fund managers pressed the sell button to repatriate cash and meet hefty cancellations at home, traders said.
Leading European stocks also lost ground at the open as they headed toward five-year lows, but then edged higher in afternoon trade, boosted by a strong opening on Wall Street.
But telecoms equipment maker Ericsson tumbled after Moody's cut its credit rating to junk status.
In the late afternoon, the FTSE Eurotop 300 index of pan-European blue chips rose 1.08 per cent and the narrower DJ Euro Stoxx 50 index gained 0.77 per cent.
In Japan, Nikkei fell 3.41 per cent at 9,591.03.