European, Asian markets rebound despite US losses

(TOKYO) European and Asian stock markets rebounded Friday as expectations of a recovery on Wall Street prompted investors to scoop up battered financial and energy shares.

The FTSE 100 index of leading British shares was up 42.78 points, or 1.1 percent, at 3,917.77, while Germany's DAX was 46.59 points, or 1.1 percent, higher at 4,266.79. The CAC-40 in France was up 34.62 points, or 1.2 percent, at 3,015.04.

The modest bounceback in Europe came after Asian markets recouped early losses in the wake of the sell-off on Wall Street to end up in positive territory. Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.

Worries about the future of both the U.S. car industry and Citigroup Inc., as well as the fall in the price of oil to three-year lows below $50 a barrel fueled the selling on Wall Street Thursday. The Dow Jones index of leading U.S. shares suffered its worst two-day percentage decline — 10.6 percent — since October 1987's stock market crash, while the broader Standard & Poor's 500 index slumped to its lowest level in 11 years.

However, U.S. stock index futures were sharply higher as investors look to buy up heavily beaten stocks. Dow futures were up 303 points, or 4 percent, at 7,787 while S&P futures were up 31.9 points, or 4.3 percent, at 780.2.

"The only saving grace is that the cherry pickers may now come in and start buying up some keenly priced stock," said Matt Buckland, a dealer at CMC Markets.