Asian shares bounce back

City A.M. Reporter
Asian shares bounced back overnIght and European stocks looked set to follow as investors returned to pick up bargains, while havens like gold and the Swiss franc lost appeal.

But broader markets remained fragile ahead of a key Franco-German summit that may offer a solution out of the spreading debt crisis.

A 0.8 per cent rise in US stock futures encouraged selective buying in Asian equities, but all eyes were on the summit and euro zone second-quarter GDP data, both on Tuesday, for more clues on the global economic outlook and the policy response needed to tackle Europe's debt quagmire.

Japan's Nikkei rose 1.4 per cent after main Wall Street indices advanced on Friday, but without the wild intra-day swings that marked trading last week when the S&P 500 moved at least 4 percent up or down for four consecutive days.

This was only the third time such volatility had rocked markets since the Great Depression in the 1930s,according to research by BofA-Merrill Lynch.