The Swiss franc plunged nearly 10% from the euro on Tuesday, suffering its worst day ever, after the Swiss central bank jolted markets by setting a limit how much the franc can gain.
Europe's drive to halt its crippling two-year debt crisis looked increasingly in danger on Tuesday amid doubts about the will in Italy as well as Greece to push through austerity demanded by their partners, and hardening opposition to help aid in the bloc's paymaster Germany.
An unexpected jump within US services sector index, however, helped stocks on Wall Street pare losses to the close and end down less than a percent.
The Start for Supply Management's non-manufacturing index rose to 53. 3 final month from 52. 7 in July. That topped a median forecast of the 51. 0 reading in a Reuters poll.
The MSCI Asian countries ex-Japan index rose 1. 3% in early trading while Japan's Nikkei had been up 1. 5%.
"As long as we do not see a jolt in this currency exchange market, short-covering may lift severely battered stocks such as exporters, inch said Yumi Nishimura, a senior markets analyst at Daiwa Investments. "US ISM data should also help the mood. "
Within commodities markets, spot gold was trading at around $1. 874. eighty after racing to above $1, 920 after the Swiss National Bank imposed an exchange rate cap about the soaring swiss franc to stave off a recession.
Brent raw prices rose overnight after three straight declines as tight Northern Sea supplies, continuing uncertainty about Libya's oil and more exotic weather threats boosted prices.
ICE Brent crude for October had been trading at around $113. 02 a barrel in early Hard anodized cookware hours.