Most Asian markets managed to bounce back and close higher Friday, except for India's Sensex index which closed down by more than 3 percent.
Markets were now only mildly weaker, though concerns of a U.S. recession persist. Japan and South Korea both finished higher, this after the Tokyo stocks had opened over 3 percent lower.
The U.S. dollar struggled near a 2-½ year low against the yen after U.S. Federal Reserve Chairman Ben Bernanke told lawmakers that more interest rate cuts may be needed to counter a worsening economic outlook, but has recovered to trade higher against the Japanese currency once investors were reassured after the Nikkei's rally.
U.S. President George W. Bush told lawmakers on Thursday he wants tax rebates for families and breaks for businesses in a rescue plan for the struggling US economy that could total $150 billion. Bush held private conference calls with leaders of the Democratic-controlled Congress and their Republican counterparts.