Japan rebounds, Europe holds gains
Markets take cue from Wall Street's big gain, but most of Pacific Rim ends lower.
LONDON (CNN) -- Major European markets moved higher Friday, taking their cues from the Dow Jones industrial average's 400-point rebound a day earlier.
In early trading, London's FTSE-100 rose 1.5%, Paris's CAC-40 gained 1.3% and Frankfurt's DAX edged up 0.6%%. However, the indexes were off their earlier highs.
Asian and Pacific markets were mostly lower Friday, a day after most of them posted significant losses.
The big exception was Tokyo, where the Nikkei average closed up 2.8%, partially recovering from Thursday's 11% slump, continuing a trend of market mood swings in the midst of the financial crisis.
"Gradually ... we will see stability return to the markets," said Mike Lenhoff of Brewin Dolphin Securities in London. "(But) We will see the volatility remain with us for a very long time."
In other Asian-Pacific markets, Australia's All Ordinaries index closed down 1.1%. In Seoul, South Korea's KOSPI index slipped 2.7%.
The Hang Seng index in Hong Kong closed down 4.4%, while the Taiwan Weighted finished down 2.3%. The Singapore Straits Times index pushed lower, slipping 2.8%.
Mumbai's BSE SENSEX was trading down about 3%.
Wall Street bounced back Thursday from a dramatic midweek slump.
The Dow industrials gained 4.7%, rising to 8,979. The rebound follows a 700 point fall on Wednesday, which was the second largest daily point loss ever.
Lenhoff said the volatility will continue for a while, but predicts world economies will begin to rebound.
"I am convinced that we actually will see a recovery," he said. "It may take some time, but I'm pretty sure we will see a recovery."
The market swings continue to plague financial institutions. Some have been bailed out by their home governments, while others have raised money privately to remain viable.
In Paris, French bank Caisse D'Epargne announced Friday it lost 600 million euros ($805 million) in the derivatives market last week, but it pointed out it still has more than 20 billion euros ($26.9 billion) in equity.
In an announcement designed to reassure the market, Caisse D'Epargne said, "This loss does not affect the financial foundation of the company and does not have any consequence for the customers."
-- CNNWires contributed to compiling this report 
-
Lauren Bush's FEED project lands her on Fortune's Most Powerful Women Entrepreneurs list. More -
Production is starting on the world's most luxe ocean liner: The Utopia. More -
The Becerras spoiled themselves with a puppy. Here's what 6 other readers are indulging on. More -
Rich nations want others to cut greenhouse gases. Who pollutes the most? More -
Many businesses were laid to rest in '09. 8 familiar names now gone. More
