Asian stocks
surrendered earlier gains to hit 3-1/2-year lows on Friday as renewed
pressure on oil prices and disappointing Chinese data kept investors on
edge.
MSCI's
broadest index of Asia-Pacific shares outside Japan declined 0.3 percent
to the lowest level since June 2012, and was on track for a loss of 2.7
percent for the week.
Japan's Nikkei rose 0.7 percent, but was set for a weekly loss of 1.9 percent.
Oil prices rebounded on Thursday, with international benchmark Brent futures rising 2.4 percent to $31.03 a barrel, recovering from its 12-year low of $29.73 hit earlier in the day.
But that rally, largely driven by short-covering after a 20 percent fall since the start of year, proved to be shortlived.
The collapse in oil prices has spooked financial markets as investors worried about the health of the global economy, with a slowdown in China and volatility in its markets making for a nervous start to the year.
"Furthermore, oil prices were under pressure once again, constraining any relief rally in energy and material stocks."Brent crude opened weaker on Friday and lost 0.6 percent to $30.69.
U.S. crude fared even worse, slumping 1.8 percent to $30.63 as the prospect of additional Iranian supply looms over the market. It had posted the first significant gains for 2016 in the previous session.
Stocks in China also returned to negative territory after a brief rebound in late trading on Thursday.
Japan's Nikkei rose 0.7 percent, but was set for a weekly loss of 1.9 percent.
Oil prices rebounded on Thursday, with international benchmark Brent futures rising 2.4 percent to $31.03 a barrel, recovering from its 12-year low of $29.73 hit earlier in the day.
But that rally, largely driven by short-covering after a 20 percent fall since the start of year, proved to be shortlived.
The collapse in oil prices has spooked financial markets as investors worried about the health of the global economy, with a slowdown in China and volatility in its markets making for a nervous start to the year.
"Furthermore, oil prices were under pressure once again, constraining any relief rally in energy and material stocks."Brent crude opened weaker on Friday and lost 0.6 percent to $30.69.
U.S. crude fared even worse, slumping 1.8 percent to $30.63 as the prospect of additional Iranian supply looms over the market. It had posted the first significant gains for 2016 in the previous session.
Stocks in China also returned to negative territory after a brief rebound in late trading on Thursday.
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