In This Article:
* MSCI ACWI set for worst week since February
* Asian, European shares bounce
* VIX volatility gauge climbs down from 8-mth high
* China trade surplus with U.S. hits record high
* Sentiment still cautious
By Ritvik Carvalho
LONDON, Oct 12 (Reuters) - Global shares were having their best day in nearly a month on Friday as European and Asian markets recovered from a brutal selloff that still left them set for their worst week since February.
After a partial recovery in Asian shares overnight, European stocks opened higher, with the pan-European STOXX 600 up 0.9 percent on the day.
Germany's DAX up 1.1 percent while Britain's FTSE 100 gained 0.4 percent.
S&P stock futures pointed to a rebound in U.S. stocks later in the day, while the VIX volatility index climbed down from an eight-month high.
The MSCI All-Country World index, which tracks shares in 47 countries, was up half a percent on the day.
"Some traders are cautiously buying back into the market today, but the underlying issues which brought about the sell-off are still relevant," said David Madden, markets analyst at CMC Markets in London.
The biggest market shakeout since February has been blamed on a series of factors, including worries about the impact of a Sino-U.S. trade war, a spike in U.S. bond yields this week and caution ahead of earnings season.
Trade figures from China on Friday showed China's trade surplus with the United States hit a record high in September, providing a likely source of contention with U.S. President Donald Trump over trade policies and the currency.
The data showed solid expansion in China's overall imports and exports, suggesting little damage from the tit-for-tat tariffs with the United States.
That added to bullish sentiment on Friday, Madden said, also noting the decision by U.S. Treasury staff to refrain from labelling China a currency manipulator as a positive for stocks.
Shanghai shares bounced 0.8 percent, recouping earlier losses of 1.8 percent as cheap valuations drew bargain hunters.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 2.15 percent, the biggest in more than two years.
But the bounce came after the index fell 3.6 percent on Thursday to hit a one-and-a-half-year low. On the week, it is still on track for a weekly loss of 3.6 percent.
Japan's Nikkei average rose 0.5 percent.
So far this week, Chinese and U.S. shares are among the worst performers, a sign investor worries about the trade war are growing.
MSCI's U.S. index has shed 5.5 percent, compared with a 4.9 percent fall for MSCI's gauge of stock performance in 47 countries. China A shares are still down 8.7 percent.