Asian stocks mostly rose and government bonds cut their gains on Monday, on hopes for more government rescues of limping industries and as long-term investors scooped up cheap shares, Reuters reported.
However, oil prices dipped to within striking distance of last week's 22-month low after policymakers from both emerging and developed economies who met in Washington chose to leave individual governments to tend their own backyards.
Despite the small return of some risk taking, many economies are buckling under the worst financial crisis in 80 years, with a report on Monday confirming that Japan has joined a growing list of economies sliding into recessions.
"For the time being, hopes that China will be able to maintain its economic growth will lend some support to the Asian markets," said Louis Wong, research director with Phillip Securities in Hong Kong.
"There is still some downside risk though because the U.S. will release economic data this week and also we will have corporate earnings from companies like Lowes and Dell."
Hong Kong's Hang Seng index .HSI rose 0.4 percent in choppy trade, with shares of China Mobile (0941.HK: Quote, Profile, Research, Stock Buzz) and HSBC (0005.HK: Quote, Profile, Research, Stock Buzz) leading the way higher.
Airline stocks such as Air China (601111.SS: Quote, Profile, Research, Stock Buzz)(0753.HK: Quote, Profile, Research, Stock Buzz), China Eastern Airlines (600115.SS: Quote, Profile, Research, Stock Buzz) (0670.HK: Quote, Profile, Research, Stock Buzz) and China Southern Airlines (600029.SS: Quote, Profile, Research, Stock Buzz) (1055.HK: Quote, Profile, Research, Stock Buzz) rallied on hopes they will get government cash injections to cope with high costs and weak demand.
The MSCI index of Asia-Pacific stocks outside of Japan .MIAPJ0000PUS fell 1.4 percent, extending last week's 9.7 drop. Year-to-date losses have piled up to around 57 percent.
Tokyo's Nikkei share average .N225 recovered from early losses, rising 2.6 percent, as the yen fell and as long-term investors snapped up cheap stocks. Some of the stocks lifting the index, such as Takeda Pharmaceutical (4502.T: Quote, Profile, Research, Stock Buzz), were so-called defensive plays, which were expected to perform relatively well in a slowdown.