Hong Kong: Asian stocks snapped a three-day streak of losses on Wednesday as short-covering helped prop up benchmarks, and the euro edged up against the dollar as traders covered some bets against the common currency after a sharp overnight fall.
The Swiss franc plunged nearly 10 percent against the euro on Tuesday, suffering its worst day ever, after the Swiss central bank jolted markets by setting a limit on how much the franc can gain.
Europe's drive to halt its crippling two-year debt crisis looked increasingly at risk on Tuesday amid doubts about the will in Italy and Greece to push through austerity demanded by their partners, and hardening opposition to further aid in the bloc's paymaster Germany.
An unexpected jump in US services sector index, however, helped stocks on Wall Street pare losses into the close and end down less than a percent.
The Institute for Supply Management's non-manufacturing index rose to 53.3 last month from 52.7 in July. That topped a median forecast of a 51.0 reading in a Reuters poll.
The MSCI Asia ex-Japan index rose 1.3 percent in early trading while Japan's Nikkei was up 1.5 percent.
"As long as we do not see a jolt in the foreign exchange market, short-covering may lift severely battered stocks such as exporters," said Yumi Nishimura, a senior markets analyst at Daiwa Securities. "U.S. ISM data should also help the mood."
In commodities markets, spot gold was trading at around $1.874.80 after racing to above $1,920 after the Swiss National Bank imposed an exchange rate cap on the soaring swiss franc to stave off a recession.
Brent crude prices rose overnight after three straight declines as tight North Sea supplies, continuing uncertainty about Libya's oil and more tropical weather threats boosted prices.
ICE Brent crude for October was trading at around $113.02 a barrel in early Asian hours.
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