Asian stock markets rebounded on Friday to erase earlier losses, but weak economic growth in Europe and worries the U.S. Federal Reserve might scale back its quantitative easing program capped major gains.
Japan's Nikkei 225 traded at its highest level in more than two-and-a-half years despite coming off Wednesday's 52-week high. South Korea's KOSPI finished above the 2,000-mark, within reach of a 7-week high and Australian shares lingered near a four-and-a-half-year high. Amid regional losers, the Shanghai Composite logged a near 4 percent weekly loss.
One analyst tells CNBC he expects markets to lose more ground in the short term. "We do not see any central banks stepping back from monetary easing so essentially, you've put a floor on equity prices so we think this correction has a bit further to go but it will be probably limited in time and duration," remarked Hans Goetti, chief investment officer at wealth management firm Finaport.