European stocks bucked a three-day losing run on Monday, helping stabilise global shares although euro zone sovereign debt worries remained close to the surface.
World equities as measured by MSCI were up slightly, despite losses in Japan and among emerging markets.
The main gainers were in Europe where the FTSEurofirst 300 index rose nearly 1 percent, based in part in reaction to a late rally in Wall Street on Friday and in a bounce back from recent falls.
The European index had three consecutive days of losses last week and lost 2.1 percent on Friday, its largest daily fall in 11 months.
Markets remained skittish about Greece's financial woes and its potential to spread to other euro zone countries and even further out.
Bank of America Merrill Lynch encapsulated the concern in a note about Asia.
"(Portugal, Ireland, Greece, Spain) aren't big enough to affect the outlook for Asia," it said. "However, rising sovereign risk could become a more widespread issue, affecting market volatility and countries' ability to maintain supportive fiscal policy."
MSCI's benchmark emerging market index was down a slightly and earlier Japan's Nikkei sank 1.1 percent to a two-month closing.
Governments, in the meantime, are trying to persuade markets that all will be well.
At the weekend G7 meeting, European finance ministers said they would make sure Greece delivered on its promises to slash its budget deficit by the end of 2012.
German Finance Minister Wolfgang Schaeuble was also quoted in a newspaper article on Monday saying that members of the Group of Seven industrialised nations were confident that the European Union will sort out Greece's debt problems.
The spread between Greek and German government bond yields tightened slightly, but still remained wide.
EURO UP
The euro recovered slightly from recent weakness along with the regional share markets. The dollar was broadly lower.
"Euro/dollar and some other riskier currencies are slightly higher, so perhaps we have a little bit of consolidation for now, but it is very much open," said Johan Javeus, SEB currency analyst in Stockholm.
"The market is looking for what kind of reassurances may come with regard to the euro zone deficit situation and any statements will continue to have an impact," he said.
The euro was up 0.2 percent at $1.369, although it is down close to 4.4 percent for 2010.
Benchmark euro zone government debt yields were slightly higher.
