The rout of global equities sparked by Britain's Brexit vote last week has softened, and the major markets in Europe, Asia and the US have begun to retrace losses from recent days.
Wall Street recorded big gains for a second consecutive day yesterday, London's FTSE 100 gained more than 3.5%, Germany's DAX closed up 1.75%, MSCI's broadest index of Asia-Pacific shares outside Japan rose 1%, to recoup about a third of last Friday's stinging loss, and Japan's Nikkei climbed 1.6%.
Forsyth Barr broker Suzanne Kinnaird said global indices were higher on Wednesday, as investor sentiment eased following the aftermath of the UK's decision to leave the European Union.
"US stocks climbed amid a global rally, with the S&P 500 posting its strongest two-day climb in four months,'' she said.
Asian stocks also rose with oil prices as the rally in global equities gathered steam, amid optimism policymakers would introduce measures to limit the economic fallout of the UK leaving the EU, Mrs Kinnaird said.
Craigs Investment Partners broker Peter McIntyre said the NZX 50 index had risen for three consecutive days, finishing up 1.3% on Wednesday.
"For the week so far the index has gained 2.05%, almost recovering from last week's decline of 2.62%,'' he said.
The Australian market also rose, the ASX 200 up 0.77%, all sectors except utilities rising, Mr McIntyre said.
London's FTSE rose 3.6% to erase its post-Brexit losses, only three sectors "finishing in the red'', he said.
"The index is back in positive territory for the year, up 1.9%,'' he said.
Wall Street recorded big gains for a second day as investors continued to search for bargains and digest the fallout from Britain's stunning vote to leave the European Union.
The S&P 500 has recouped more than half its losses from the two-day rout following the British referendum, which wiped $US3trillion ($NZ4.23trillion) in value from global equity markets, according to S&P Dow Jones Indices.
