Asian shares hovered above two-month lows on Thursday as some high-tech bellwethers bounced back after a searing sell-off although softer oil and copper prices and uncertainty over US policy kept many investors cautious.

Major European stock futures are trading higher, with Germany’s DAX futures up 0.4 per cent, while those for Britain’s FTSE and France’s CAC were each up 0.1 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent as some technology bellwethers rebounded, with Tencent rising over 3 per cent and Alibaba more than 2 per cent.

The MSCI index has slipped 4.5 per cent from a 10-year peak hit on Nov. 23 as investors booked profits after stellar gains this year.

In Japan, the Nikkei jumped 1.5 per cent, recouping much of its 2.0 per cent loss the previous day, which was its biggest fall since late March.

Investors are looking to final tax reform legislation in the United States, where a potential US government shutdown looms if Congress fails to agree on a spending package.There are also fears of a violent backlash in the Middle East from President Donald Trump’s recognition of Jerusalem as Israel’s capital.

“I would say markets are going through a healthy correction after their rallies during the past three months, or six months. I don’t think we need to panic,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

MSCI’s gauge of stocks across the globe stood near Wednesday’s two-week low while Wall Street’s benchmark S&P 500 index edged down for its fourth straight session of losses.