European stocks and US futures advanced overnight, as traders waxed optimistic that the credit crisis won't spread to affect the broader economy. But Asian markets are more concerned about the general prospect of a US slowdown—which could hit Asia's export-heavy economy hard.
The Stoxx 600 was up .3%, while the Nikkei was off 1.7%, and the Yen lost some of its recent steam, falling to over 114 to the dollar. "Things may not be as bad as they seem as the crisis so far is a question of liquidity not solvency,'' says an Edinburgh investment manager. In Asia, things don't look so rosy. "The market is suffering from a trust problem, it's a lack of confidence." says an Asian equity expert.