NEW YORK - US investors are holding steady in a shaky global market. After big drops in stocks last week sparked by a slowing Chinese economy and plunging emerging market currencies, the selling moderated. Caterpillar, a big component of the Dow Jones industrial average, surged after reporting a jump in profits. The Dow Jones industrial average was up 60 points, or 0.4 per cent, at 15,940 in late afternoon trading, boosted by Caterpillar. The Standard & Poor's 500 index was up three points, or 0.2 per cent, at 1,793, and the Nasdaq composite was down 14 points, or 0.3 per cent, at 4,114. LONDON - European stocks slid further on expectations of further stimulus withdrawal by the Federal Reserve adding to emerging market strains, but avoided another sell-off. However, London's benchmark FTSE 100 index tumbled 1.7 per cent to close at 6,550.66 points, taking hits from sharp falls for the share prices of British energy company BG Group and mobile phone giant Vodafone. Frankfurt's DAX 30 gave up 0.46 per cent to 9,349.22 points despite a sharp rise to German business confidence, while in Paris the CAC 40 shed 0.41 per cent to 4,144.56 points. Madrid fell 1.12 per cent while Milan shed 0.44 per cent. While European markets were hit at the open by a sell-off on Asian markets, by afternoon most had trimmed their losses, but then sank again after data showed US new home sales fell seven per cent in December. HONG KONG - Asian markets sunk following the worst losses on Wall Street in seven months, with investors gripped by renewed fears over emerging economies days ahead of a crucial Federal Reserve policy meeting. Japan's Nikkei, which was the best performer last year, continued its 2014 downtrend as the yen remained elevated against the US dollar, while shares in developing countries also suffered selling pressure. Tokyo tumbled 2.51 per cent, or 385.83 points, to 15,005.73, Seoul fell 1.56 per cent, or 30.22 points, to 1,910.34, Hong Kong dived 2.11 per cent, or 473.96 points, to 21,976.10 and Shanghai gave up 1.03 per cent, or 21.09 points, to end at 2,033.30. Taipei dipped 1.58 per cent and Manila fell by 1.78 per cent. In New York on Friday, the Dow sank 1.96 per cent, the biggest percentage point fall since June last year, while the S&P 500 plummeted 2.09 per cent and the Nasdaq lost 2.15 per cent. WELLINGTON - New Zealand shares fell as Asian markets continued a downturn due to anxiety over global economic recovery. The NZX 50 Index dropped 19.9 points, or 0.4 per cent, to 4,853.8 on Monday.