US stocks snapped a six-day losing streak on Wednesday after one of the most senior officials in the Fed said the turmoil that has gripped world financial markets had weakened the case for a rate rise in September.

Concerns the US could raise interest rates as early as next month have been heaping pressure on world markets already nervous about signs China's economy -- the world's second-largest, accounting for some 13 percent of global output -- is slowing more than thought.

But investors cautioned the rout that has wiped $3.45 trillion off world shares in a week and battered commodities and emerging market currencies was far from over, predicting markets would continue their roller-coaster ride.

"Solid US economic data, stimulus efforts from the Chinese central bank and signs that the Federal Reserve are backing off from a September rate hike helped," Jasper Lawler, a London-based market analyst at CMC Markets, told Bloomberg News.

"Anxiety is likely to maintain a tight grip over investors until the wild gyrations in share prices calm down and signs of a bottom are put in markets."

Tokyo shares added 2.05 percent in early deals, while Hong Kong surged 2.36 percent and Shanghai rose 2.10 percent.

Asian markets initially rose on Wednesday after China's central bank reduced interest rates and slashed the amount of money banks need to hold in reserve -- its second such tandem move in two months -- in a bid to stoke growth.

The measures are not only aimed at boosting cash flow in China, but also at reviving confidence that Beijing can steer the economy away from a hard landing and keep global growth on course.

But even the long-awaited cuts were not enough to soothe jittery traders, and markets ended the day mixed.

- 'Concerned about the outlook' -

William Dudley, the head of the New York branch of the Fed and one of the most influential members of its monetary policy board, on Wednesday said the reasons for a rate hike in September had faded.

"The slowdown in China could lead... to a slower global growth rate and less demand for the US economy," he said.

"We're concerned about the outlook, how is the economy going to perform in the future... And there, international developments and financial market developments do have relevance because they can impinge and affect the economic outlook."

While signs the US economy -- the world's largest -- is strong are a plus for world growth, a rate hike would likely strengthen the greenback and so make trade in dollar-priced products, from food to oil, more expensive for other countries.

"The consensus now is that a September rate hike probably won't happen," Mitsushige Akino, an executive officer at Ichiyoshi Asset Management, told Bloomberg News.

"This means we get to keep the excessive liquidity that's been supporting markets for a little longer, so there's a feeling of relief."

In Tokyo currency trade, the dollar rose to 120.17 yen from 119.98 yen in New York late Wednesday.

The euro traded at $1.1328 and 136.08 yen compared with $1.1312 and 135.72 yen in US trade.

Oil also climbed after a US energy report showed a dip in crude inventories but barely any decline in production, despite a steep drop in world prices.

US benchmark West Texas Intermediate for October delivery gained 74 cents to $39.34 while Brent crude for October rose 79 cents to $43.93.

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