Nikkei (3)
A pedestrian holding an umbrella walks past an electronic board showing the graphs of the recent fluctuations of Japan's Nikkei average outside a brokerage in Tokyo, Japan, Jan. 18, 2016. Reuters/Yuya Shino

European stocks opened in the red Monday after oil prices reversed early gains to tumble nearly 4 percent. However, shares in Asia reaped gains from the short-lived uptick in oil prices, closing broadly higher.

China’s benchmark Shanghai Composite Index ended the day up 0.75 percent, providing investors a reprieve from a stock market volatility that has, since the start of the year, wiped out nearly 17 percent in the cumulative market value of all listed stocks. The smaller Shenzhen Composite also rose, ending the day up 1 percent.

Other Asian stock markets, including India’s Sensex, Japan’s Nikkei 225 and South Korea’s Kospi Composite index were also boosted by early gains in the price of oil. Expectations that the European Central Bank will possibly introduce fresh monetary stimulus provided another boost to regional shares, and investors also gained confidence amid speculation that the Bank of Japan will announce stimulus measures at its meeting later this week.

“The latest rebound in oil, combined with European and Japan central bank's hinting at further stimulus, has provided a short-term reprieve for what so far this year, can be described as a nervous and punishing market,” Gary Huxtable, client adviser at Atlantic Pacific Securities, told Reuters early Monday.

However, as crude oil prices tumbled 4 percent on persistent worries about oversupply and profit-taking, European stock markets had a muted start.

The pan-European Stoxx 600 dropped over 0.5 percent in the first few minutes of trade, before paring its losses and trading down 0.1 percent. The performance was echoed across bourses in Europe, including in Germany, where investors’ moods were not helped by the findings of a monthly survey of economic sentiment that showed that business leaders are less optimistic about the future.

The current business climate indicator, compiled by the think tank IFO, dropped to 112.5 in January, down from 112.8 in December, while the expectations index fell to 102.4 from 104.6.

“With the European indices already losing whatever green glow their futures had acquired, failing to capitalize on last Friday’s week-rescuing surge, it looks like investors are in store for another long day,” Connor Campbell, a financial analyst at SpreadEx, told the Guardian.

Meanwhile, as oil prices slipped back below $32 a barrel, U.S. stock futures traded mostly flat. During this week’s trade, investors will be taking cues from the U.S. Federal Reserve, which, after its meeting on Tuesday and Wednesday, is unlikely to announce a change in monetary policy.