Asia Pacific shares bounced off five year lows on hopes that a rescue or merger for the US financial giant, Citi, would reduce strain on the world’s financial system,

Financial shares led a rally that wiped out most the losses made earlier in the day as oil dropped below $50 a barrel, suggesting economic activity was slowing and recession was more likely, and the S&P 500 index in New York closed at an 11½-year low overnight.