Asian scrips extended gains to the second straight day today while global stocks recovered

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as concerns about a possible contagion of the Dubai debt crisis faded.

However, stocks in the Gulf remained in the red despite Dubai World clarifying that the debt restructuring process would only be to the tune of USD 26 and restricted to Dubai World, Nakheel and Limitless.

The UAE markets extended their yesterday's loss and the Abu Dhabi Securities Exchange's General Index fell 3.57 per cent to 2,573.02 points and Dubai's DFM Index plunged 5.61 per cent to 1,831.48.

European stocks shrugged off the losses they suffered as a ripple effect of the Dubai crisis with the benchmark indices inching up nearly two per cent.

In Europe, the Frankfurt DAX index was trading higher by 1.93 per cent at 5,734.46 points, while the CAC-40 of Paris gained 2.01 per cent at 3,754.03 in the early trade. Europe's broader index Dow Jones Stoxx 600 Index gained 1.92 per cent.

Asian stocks stretched gains to over two per cent, buoyed by Bank of Japan's move to revive lending and improved Asian economic data.

China's Shanghai index ended up by 1.25 per cent at 3,235.36 and Hong Kong's Hang Sang index closed higher by 1.34 per cent at 22,113.15 points.