Risk assets rebound with eyes on Japan; Oil jumps on Libya

Riskier assets are delivering a rebound on hopes the Japanese authorities are taking control of the crisis hit country, countering renewed concern about Libya which is again boosting the oil price.

Crude oil climbed 3.5% last night, the most in three weeks, after foreign ministers agreed to effect a no-fly zone against Libyan leader Muammar Qaddafi's forces.

The FTSE All-World equity index is up 0.1%, reducing its losses over the week since the massive earthquake and tsunami hit the world's third biggest economy to 2.4%, the Financial Times reports.

Havens such as US Treasuries and the Swiss franc are being sold and S&P 500 futures are up 0.7%.

Japan's Nikkei 225 had risen 2.7% by about 7.30am GMT, trimming its slide over the past six sessions from 21% at its worst point on Tuesday to 11.7% by Friday's close.

Also helping sentiment is an agreement by the G7 to deliver coordinated intervention to weaken the yen.