Asian stock markets were mostly higher on March 7, extending a tentative recovery as investors went fishing for bargains after Wall Street rebounded following a week of losses. The main indices rose for a second straight day in Shanghai, Sydney and most other markets across the region, but Tokyo and Hong Kong turned lower again. The main European bourses opened slightly higher.

Wall Streets strong rally on March 6 bolstered sentiment, but they added that the gains may be capped by profit-taking as many investors are still uncertain about the global market outlook. Analysts said that shares were likely to continue a period of adjustment following the recent rout sparked by worries about the slowing US economy and Chinas rapidly rising stock market.

In Shanghai the composite index closed up 1.99 per cent, continuing a recovery after a weeklong slump that roiled markets around the world. After dipping in and out of the red, Tokyo closed down 0.47 per cent on March 7 and Hong Kong lost 0.73 per cent, while Sydney ended up 0.93 per cent. Elsewhere in the region, shares were up 0.57 per cent in Seoul, 0.40 per cent in Taipei and 0.72 per cent in Wellington. Jakarta was up 0.51 per cent, Singapore added 1.02 per cent and Kuala Lumpur gained 2.16 per cent in late trade while Manila finished up 3.03 per cent.

The Asia-Pacific markets remain attractive, given positive liquidity conditions, limited exogenous risks from the US or oil, and reasonable valuations.