(MENAFN- AFP) Markets in Europe and the US eked out gains Monday shrugging off another tumble across Asia that saw Shanghai plunge more than five percent on stubborn worries about China's economic slowdown.
"Asian shares sank to their lowest in over four years on Monday as doubts mounted about Beijing's ability to manage the world's second-biggest economy," said ETX Capital trader David Papier.
On Wall Street, the Dow Jones and Nasdaq were slightly higher in early trading, seeking to rebound after Friday's losses, with the Dow Jones up 0.08 percent and the Nasdaq rising 0.04 percent.
In Europe, markets proved volatile switching frequently between gains and losses in morning business, before firming on a steady New York open.
At about 1458 GMT, London's benchmark FTSE 100 index was up 0.13 percent compared with Friday's close.
In the eurozone, Frankfurt's DAX 30 won 0.93 percent and the Paris CAC 40 climbed 0.74 percent.
The euro fell to $1.0880.
Official data Saturday showed Chinese consumer prices picked up slightly in December but inflation remained about half the government's target.
Prices paid at the factory gate, a guide to future inflation, also sank for a 46th consecutive month.
The figures are the latest highlighting weakness in China, which is expected to have grown in 2015 at its slowest rate in a quarter of a century.
On Monday Shanghai closed down 5.3 percent, while Hong Kong gave up 2.8 percent.
Sydney and Seoul slipped 1.2 percent while Singapore was 2.0 percent off. Tokyo was closed for a public holiday.
Investors extended losses from last week, which was one of the worst starts to a year on record for global equities with dealers rattled after trade was suspended twice in four days in China.
Shanghai ended the week about 10 percent lower in echoes of a sell-off that fuelled global turmoil in the summer.
- 'Kneecapping' -
A series of cuts in the Chinese currency's value to a five-year low against the dollar added to the sense of nervousness as Beijing stood accused of bungling its handling of the markets.
On Friday the central People's Bank of China sought to soothe nerves by pledging "prudent" monetary policy and work to ensure "reasonably abundant liquidity" in the banking system this year.
"Chinese equities have had a tough start to the year. This has flowed around the globe, kneecapping equities, where valuations were already deemed to be stretched," said Mark Smith, a senior economist in Auckland at ANZ Bank New Zealand.
"A weaker inflation outlook and heightened market volatility has also swung the pendulum back to more policy support."
Oil prices continued their slump, with both main global contracts dropping on Monday. The slowdown in China -- the world's biggest energy user -- further fuelled a decline sparked by a worldwide glut, weak demand and a strong dollar.
Worries about the global outlook pushed up the price of gold, which is considered a safe investment in times of uncertainty. The precious metal, which is up more than three percent so far this year, bought $1,105 an ounce Monday.
- Key figures around 1510 GMT -
London - FTSE 100: UP 0.13 percent at 5,920.33 points
Frankfurt - DAX 30: UP 0.93 percent at 9,940.73
Paris - CAC 40: UP 0.74 percent at 4,365.94
EURO STOXX 50: UP 0.95 percent at 3,062.22 points
Shanghai - Composite: DOWN 5.3 percent at 3,016.70 (close)
Hong Kong - Hang Seng: DOWN 2.8 percent at 19,888.50 (close)
Tokyo - Nikkei 225: Closed for public holiday
New York - Dow: UP 0.08 percent at 16,359.94 points
Euro/dollar: DOWN at $1.0898 from $1.0922
Dollar/yen: UP at 117.62 yen from 117.26 yen
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