European stocks closed slightly higher Wednesday, clambering out of the red after credit-ratings firm Fitch Ratings said it doesn't foresee any rating action on German banks as a result of their exposure to Greece.
In Asia, most markets ended lower, with Chinese shares dragged down on worries about the nation's slowing economic growth and rising inflationary pressure. The Stoxx Europe 600 index ended up 0.7% at 277.37.
In LONDON, the FTSE 100 nudged up 0.2% to 5870.14. Banks recouped some of the prior day's losses that came after Moody's Investors Service said it has put the ratings of 14 U.K. firms on review for a possible downgrade.
Barclays rose 2.3%, and Royal Bank of Scotland Group gained 2.1%. In the luxury-goods sector, Burberry Group fell 1.6% ahead of full-year results due Thursday.
In FRANKFURT, the DAX 30 index gained 0.3% to 7170.94. Commerzbank, which Fitch said has the biggest euro exposure to Greece among commercial banks, surged 6.1%. In PARIS, the CAC 40 index closed up 0.3% to 3928.99, with bank shares in the lead. Natixis rose 2.4%, BNP Paribas gained 2.2% and Credit Agricole added 2.3%.
In TOKYO, the Nikkei Stock Average fell 0.6% to 9422.88. Heavy-machinery makers that export to China were pressed by the weakness in the Shanghai market. Komatsu was off 1.6% and Hitachi Construction Machinery fell 2.2%.
Advances in some Japanese car makers restricted losses in Tokyo, after the Nikkei reported that Toyota Motor planned to bring back domestic auto production next month to as much as 90% of targets set before the March 11 earthquake, citing swift improvements in parts supplies. It also reported that the car maker now hopes to normalize production earlier than its previous forecast of November or December.
Toyota rose 2.2%, helping drive Nissan Motor 1.3% higher. In SHANGHAI, the composite shed 0.9% to 2741.74, the lowest close since Jan. 26. Banks were among the biggest losers after Standard & Poor's warned inflation combined with slowing economic expansion could trigger a marked increase in nonperforming loans in the next two to three years. Agricultural Bank of China fell 2.5%, China Minsheng Banking gave up 1.9% and Industrial Bank sank 3.1% in Shanghai.
In MUMBAI, the Sensex shed 0.9% to 17847.24. Software stocks fell after Infosys Technologies said late Tuesday it had received a subpoena from a U.S. federal court asking the Indian software exporter to provide sponsorship details of visas meant for its employees visiting the U.S. for meetings, conferences and business negotiations. The company said it intends to comply with the notice and cooperate with the grand jury's investigation. Infosys fell 1.8%.