Volatile global markets got some respite from the latest blood-letting on Tuesday as bargain hunters nudged up Asian and European stocks, though China, at the centre of the rout, was smashed again.

The dollar and oil prices saw their first rises in five days and some of the positions in safe-haven bonds and currencies such as the yen and the euro were also cut as investors nervously dipped their toes back in the still choppy waters.

China’s main equity markets had seen another huge 8 per cent drop overnight and Japan’s Nikkei had slumped 4 per cent, but the rest of Asia had been calmer overall.

Europe also started on a firmer footing after Monday’s global beating had wiped around €450 billion ($520.70 billion) off the value of its leading stock markets.

The pan-European FTSEurofirst 300 index clawed back 1.7 per cent of the more than 5 per cent it had lost as London, Paris and Frankfurt bounced 1.5-1.7 per cent.

“We are seeing signs of relief with European stocks opening higher despite China extending its losses,’’ said Piotr Matys, an emerging markets expert at Rabobank in London.

“We are trying to decouple but I think it’s too early to declare the worst is over though and we are out of the woods. The way I see it is that this is a bit of a technical correction after things got a bit oversold.’’

Currency market

The currency market was also calmer. The dollar rose against the yen as it pulled out of a four-day long slide that had left it at a seven-month low.

Traders said a rise in US stock index futures and a brief rebound in Japanese stocks had helped spur dollar-buying against the yen earlier in the day, with the dollar rising to 120.11 yen at one point.

German Bund and other euro zone government bond yields also rose along with those on US Treasuries as the previous day’s rush for safety eased, although it was far from plain sailing.

Mainland Chinese shares had another calamitous day, with the Shanghai Composite Index falling another 8 per cent and breaking below the psychological level of 3,000. The index fell 15 per cent in the previous three days, including an 8.5 per cent collapse on Monday.

“Global investors are cannibalising each other. Calling it a market disaster is not an overstatement,’’ said Zhou Lin, an analyst at Huatai Securities.

“The mood of panic is dominating the market ... And I don’t see any signs of meaningful government intervention.’’

Oil prices also stabilised, however, after plunging more than 6 per cent and hitting 6 1/2-year lows.

US crude futures traded at $38.73 per barrel, up 1.2 per cent on the day, while Brent crude futures last stood at $43.03 after having fallen to $42.23 on Monday. Copper nudged up a fraction too to $4,956 a tonne.

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