Asian stocks rose, halting two days of losses in regional equities, after U.S. shares staged a rebound amid China’s efforts to steady a volatile market.

The MSCI Asia Pacific Index gained 0.2 percent to 128.65 as of 9:04 a.m. in Tokyo. The new year ushered in volatile trading as Chinese authorities intervened in a bid to stabilize domestic equities and reports showed weak manufacturing in the world’s two biggest economies. The Standard & Poor’s 500 Index erased an earlier decline to end Tuesday up 0.2 percent as phone companies and utilities rallied.

Volatility ramped up in China Tuesday with the benchmark index climbing 1 percent, plunging as much as 3.2 percent and then recovering almost all those losses in the final hour. Chinese government funds propped up share prices, according to people familiar with the matter who asked not to be identified as the buying wasn’t publicly disclosed, stabilizing the nation’s markets after a 7 percent rout Monday. Markets in Hong Kong and China are yet to open.

Source: Bloomberg