The Irish Stock Exchange has recovered some of its €4.8 billion losses from yesterday and is up 1.6 per cent.
At 9.15am the Dublin market was at 9224, up 163 points. Many of the biggest stocks - which were among the heaviest fallers yesterday - led the recovery, with AIB shares up 45 cents to €22.4 and CRH stocks clawing back 58 cents of its losses yesterday to €29.9.
Other financial stocks were ahead on the Dublin market in early trade with Bank of Ireland ahead 43 cents at €16.96. Irish Life and Permanent stocks are also ahead at €20.35, up 35 cents.
Ryanair shares were also up, rising 14 cents to €5.52.
Investors sent European and Japanese stock prices sharply higher this morning, a day after taking steep losses.
Among national indexes, Britain's FTSE 100 was up 1.5 per cent, Germany's DAX rose 1.6 per cent, and France's CAC 40 was up 1.4 per cent.
Earlier, Tokyo's Nikkei closed up 1.1 per cent at 16,860.39, after a 3 per cent loss a day earlier, and the broad TOPIX index rose 1.15 per cent to 1,694.18.
Concern has focused on the US subprime mortgage lending market where financial institutions are exposed to people with weak credit histories defaulting on their loans.