Asia Off Lows, Europe Flat

Nikkei rallied from down 7% to close down 2%, Hong Kong down 4%.  Europe flat.

Oil bubble continues to pop:t $68 on emerging-market weakness.

NYT: Global stock markets were mixed Thursday, with European exchanges mostly higher after another big sell-off in Asia.

In early trading, the Dow Jones Euro Stoxx 50 index, a barometer of euro zone blue chips, rose 0.3 per cent, while the FTSE 100 index in London up 0.8 per cent. The CAC 40 in Paris rose 1 per cent, and the DAX in Frankfurt was unchanged.

Trading in U.S. index futures suggested Wall Street stocks would open more than 1 per cent higher, after the Dow Jones industrial average fell 5.7 per cent Wednesday. Shares of Credit Suisse fell 3.1 per cent. The Swiss bank announced a third-quarter net loss of 1.3 billion Swiss francs, or about $1.1 billion, in line with forecasts.

In Sweden, the central bank surprised the market with half-per cent cut in the main lending rate. The Riksbank moved for the second time in two weeks, reducing its repo rate to 3.75 per cent.

The surging yen hurt shares in Tokyo, where the benchmark Nikkei 225 stock average plunged more than 7 per cent in early trading before recovering to close down 2.5 per cent. The stronger yen reduces the profits that Japanese exporters earn overseas when they are repatriated into yen. Exports, which had been a major source of strength for the economy, are showing signs of stress.

  Latest quotes here.

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