BANGKOK - MOST Asian and European markets rebounded on Friday after sharp declines in recent days as investors scooped up battered financial and technology shares.

Major Asian benchmarks opened lower after Wall Street tumbled to multiyear lows overnight but climbed into positive territory in afternoon trading. Oil prices, which had fallen below US$49 (S$75) a barrel to three-year lows in early trading, also bounced back.

'After tanking for so many days there will always be a belief that you just can't draw a straight line down. There may be a day or a day and a half of respite', said Mr Song Seng Wun, head of research at CIMB Securities in Singapore.

'But there is still a lot of uncertainty. If there was some announcement of help for the US auto industry that might buy us some time but the strategy still seems to be to sell into any strength', he said.

Japan's Nikkei 225 stock average rose 207.75, or 2.7 per cent, to 7,910.79, helped in part by a weaker yen, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 per cent, to 12,763.81.

South Korea's Kospi surged 5.8 per cent and Australia's market closed up 1.9 per cent after initially falling more than 3 per cent.

But mainland China's Shanghai Composite index slipped 0.7 per cent and markets in the Philippines and Indonesia also sank.

In early European trading, London's FTSE-100 index was up 0.6 per cent, France's CAC-40 rose 0.7 per cent and Germany's DAX gained 0.5 per cent.

US stock index futures were sharply higher, suggesting Wall Street would bounce back after a crushing two-day 10.6 per cent plunge in the Dow Jones industrial average, its worst two-day percentage loss since October 1987.

Dow futures were up 303 points, or 4 per cent, at 7,787 and S&P 500 futures were up 31.9 points, or 4.3 per cent, at 780.2.

Wall Street tumbled on Thursday as hopes faded that lawmakers would quickly assemble an aid package for US automakers.

Stocks were also battered by worries the US$700 billion bailout won't be big enough and oil plunging to a three-year low on expectations of a global economic recession.

The S&P 500 index fell 6.7 per cent to its lowest close since April 1997. The Dow, meanwhile, fell 445 points, or 5.6 per cent, to its lowest close since March 2003.

Oil prices, which have fallen to a third of their July peak, edged up in Asian trading. Light, sweet oil for January delivery rose 20 cents to US$49.62 a barrel on the New York Mercantile Exchange after earlier falling as low as US$48.25, the lowest since May 2005.

Financial, real estate and technology stocks led the recovery in Asia.

In Hong Kong, HSBC Holdings PCL jumped 4.5 per cent, China Construction Bank Corp. was up 6.7 per cent, and developer Cheung Kong jumped 5.8 per cent.

Japan's Sony rose 5.6 per cent and megabank Mitsubishi UFJ Finance rose 2.5 per cent.

In Seoul, Woori Financial Group vaulted 14.5 per cent and Shinhan Financial Group gained 8 per cent. Taiwan's Semiconductor Manufacturing Company, the world's largest contract chip-maker, gained 4.6 per cent.

'There's a little bit of strength coming back into beaten-down stocks', said Mr Andrew Yates, vice president of foreign institutional sales at Asia Plus Securities in Bangkok.

'But the volumes are not great so it's difficult to call a bottom particularly with the macro picture being so weak'.

In currencies, the US dollar rose to 95.26 yen from 93.79 late on Thursday, while the euro rose to US$1.2535 from US$1.2432.

KUALA LUMPUR
Malaysian share prices closed 0.2 per cent higher on Friday amid mild bargain hunting as regional markets recovered from early falls, dealers said.

The Kuala Lumpur Composite Index rose 1.56 points to close at 866.88.

HONG KONG
Hong Kong share prices closed 2.9 per cent up on Friday, reversing earlier losses as investors hunted for bargains in financial stocks after four straight days of falls, dealers said.

The benchmark Hang Seng Index rose 360.64 points at 12,659.20. Turnover was 50.44 billion Hong Kong dollars (S$9.9 billion).

SHANGHAI
Chinese share prices closed down 0.72 per cent on Friday, following falls in US stocks overnight and persistent concerns about the global economy, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, closed down 14.37 points at 1,969.39 on turnover of 83.8 billion yuan (S$18.8 billion). It was down 4.28 per cent by midday on Friday.

The Shanghai A-share index lost 15.02 points, or 0.72 per cent, to 2,068.75 on turnover of 83.4 billion yuan, while the Shenzhen A-share index slid 4.55 points, or 0.78 per cent, to 581.5 on turnover of 37.5 billion yuan.

TOKYO
Japan's Nikkei stock index closed up 2.70 per cent on Friday, reversing early losses as investors hoped for a recovery on Wall Street despite a steady flow of bad news on the economy, dealers said.

The Nikkei climbed 207.75 points to end at 7,910.79. -- AFP, THOMSON REUTERS, BERNAMA, AP