Asian stocks dipped early on Wednesday amid smoldering banking sector concerns, particularly banks in Europe, while the safe-haven yen stood atop large gains made overnight.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.2 percent. The decline was limited after Wall Street shares cut most of their losses overnight and gave battered risk assets some relief.

Australian stocks fell 1 percent. Japan’s Nikkei .N225 lost 0.2 percent after sinking 5.4 percent on Tuesday.

Equity markets remained wobbly after being hit hard early in the week by worries about the health of the euro zone banking sector, with a very easy monetary policy seen crimping bank profits and consequently their ability to repay debt.

Source: Reuters