Australian shares look set to open comfortably higher the day after almost $30 billion was wiped off the market and the S&P/ASX200 suffered its worst one-day performance since November 9.
At 0700 AEDT on Thursday, the share price futures index was up 19 points, or 0.33 per cent, at 5,687 points.
Major international markets have been a sea of red overnight with MSCI's world stocks index falling half a per cent in its biggest two-day drop since December 15 as investors sought safe havens amid fears US president Donald Trump will struggle to get his corporate tax cuts and easing of regulations through Congress.
European shares hit two-week lows and Asian equities suffered their biggest one-day fall since December 15, with Tokyo's Nikkei 225 dropping 2 more than two per cent.
Wall Street was mixed, recovering somewhat from the previous sharp declines.
The Dow Jones Industrial Average closed flat, up just 0.03 per cent, while the S&P 500 gained 0.19 per cent and the Nasdaq rose 0.48 per cent.
No major economic news is expected on Thursday
In equities news, Sigma Pharmaceuticals is expected to post full-year results, while Washington H Soul Pattinson and Brickworks are slated to release half-year results.
The Australian market on Wednesday fell more than 1.5 per cent with almost $30 billion wiped from the value of the Australian shares amid concern about likely delays to President Trump's healthcare and tax reforms.
The benchmark S&P/ASX200 index fell 90.1 points, or 1.56 per cent, to 5,684.5 points, while the broader All Ordinaries index was down 87.5 points or 1.5 per cent, at 5,732 points..
Meanwhile, the Australian dollar is higher against its US counterpart which has fallen 0.2 per cent against a basket of currencies on concern over the prospects for President Trump's economic growth strategy.
The local currency was trading at 76.80 US cents at 0700 AEDT on Thursday, from 76.60 on Wednesday.
CURRENCY SNAPSHOT AT 0700 AEDT:
One Australian dollar buys:
* 77.88 US cents, from 76.60 on Wednesday
* 85.35 Japanese yen, from 85.45 yen
* 71.12 euro cents, from 70.92 cents
* 61.50 British pence, from 61.42 pence
* 108.76 New Zealand cents, from 108.88 NZ cents
BOND SNAPSHOT AT 0700 AEDT:
* CGS 5.25 per cent March 2019, 1.7782pct, from 1.778pct
* CGS 4.25pct April 2026, 2.7069pct, from 2.707pct
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.22 (implying a yield of 2.78pct), from 97.205 (2.795pct) on Wednesday
* March 2017 3-year bond futures contract at 97.98 (2.02pct), unchanged.
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)