Financial markets swung wildly on Thursday in volatile trading marked by further selling of equities and fears about an unravelling of the global carry trade.

An unexpected rebound in US manufacturing helped steady nerves after heavy early selling of equities that was apparently triggered by a strengthening of the yen. A stronger yen puts pressure on global carry trades, which involve borrowing at low yen interest rates to buy stocks, bonds or other assets in higher-yielding currencies.