
In Europe, early 1.5% to 3% gains in London, Frankfurt and Paris were quickly wiped out as airline and travel stocks suffered a 6.5% drubbing.
Oil gave up attempted gains after Brent's drop below $30 a barrel on Monday.
"We saw quite a staggering drop yesterday (Monday), so it might just be a bit of calm after that storm," said Rabobank analyst Bas Van Geffen. "But we are not sure."
Financial markets cratered on Monday with the S&P 500 tumbling 12%. Emergency central bank rate cuts globally only added to the investor panic.
Tuesday's stabilisation saw Australian shares close 5.9% higher, their biggest daily percentage gain since October 2008, after plunging nearly 10% on Monday.
MSCI's broadest index of Asia-Pacific shares and Japan's Nikkei both finished steady. South Korea finished down 2.4%, however, and the Philippines became the first country to suspend all trading over the virus.
Futures trade still pointed to a positive open in US markets. The S&P 500 e-minis were up 1%, although earlier they had been up 3.8%.
Some $2.7 trillion in market value was wiped from the S&P 500 on Monday as it suffered its third-largest daily percentage decline on record. Over the past 18 days, the benchmark index has lost $8.3 trillion. World stocks have hemorrhaged over $15 trillion.
"The move in US stock futures prompted some buying of battered down shares and lifted dollar/yen," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. "The focus is shifting to the fiscal response to the virus. We're locked in a pattern where markets bounce and then resume falling."
Waiting for help
Gold, which is normally bought as a safe haven, extended declines on Tuesday as some investors chose to sell whatever they could to keep their money in cash.
The US Federal Reserve stunned investors with another emergency rate cut on Sunday, prompting other central banks to ease policy in the biggest coordinated response since the global financial crisis more than a decade ago.
Investors, however, are worried that many have used up their ammunition and that more draconian restrictions on personal movement are necessary to contain the global coronavirus outbreak.
Group of Seven finance ministers are expected to hold a call on Tuesday night. Markets want to see public health progress as well as fiscal stimulus.
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