Asian stocks hit a 9-1/2-month low on Friday and faced their worst week since May last year as investors continued to grapple with the U.S. Federal Reserve's plan to scale back stimulus, while credit markets showed signs of stabilising, according to Reuters.
As Asian shares and other assets came off their lows following Thursday's sharp sell-off, European stocks were seen inching higher, with financial spreadbetters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX would open up as much as 0.3 percent.
A 0.5 percent rise in U.S. stock futures also hinted at a rebound on Wall Street.
China's stressed money market had a respite from Thursday's acute credit squeeze, with speculation that the People's Bank of China had discreetly injected desperately-needed funds, though rates remained elevated.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.8 percent, after dipping 1.4 percent earlier to its lowest since September, and was set for a weekly loss of 4.3 percent, its worst weekly drop since May 2012.
Japan's benchmark Nikkei stock average outshone the rest of the region, reversing an earlier decline of more than 2 percent to end up 1.7 percent, with a weaker yen against the dollar improving market sentiment.
Australian shares trimmed earlier losses to fall 0.4 percent while South Korean shares recovered some ground after skidding 2.4 percent to their lowest in 11 months. Hong Kong and Shanghai also clawed back some early losses.
"Clearly, the Fed tapering is on the table now...and it will take some time for investors to digest," said Adrian Foster, head of financial markets research for Asia-Pacific at Rabobank International in Hong Kong.
He added, however, that over the longer term financial markets will regain stability, particularly the U.S. bond market, as the U.S. budget deficit is reined in.