Asian Markets Rebound on Rate Cut

Most Asian markets rebounded Wednesday, reversing their recent gut-wrenching plunge as investors welcomed a hefty, surprise interest rate cut by the U.S. Federal Reserve to shore up the sagging American economy.

But European markets slipped in early trading.

Analysts said the market turmoil would linger for some time because the
Fed's emergency action was seen by some as a sign American authorities
view the U.S. credit crunch as a very serious problem.

"The Fed's action provided a very positive surprise," said Tsuyoshi
Segawa, strategist at Shinko Securities Co. in Tokyo. "But people are
also starting to think that things may be so bad they needed to act."

In Hong Kong, the Hang Seng index surged 10.7 percent — its biggest
gain 10 years — to 24,090.17, regaining much of the 13.7 percent it had
shed over the previous two days.

Japan's Nikkei 225 index rose 2 percent to close at 12,829.06 after
tumbling 9.3 percent the previous two days, while India's Sensex was up
5.7 percent in afternoon trading, recapturing nearly half its 12
percent losses from Monday and Tuesday.

In Shanghai, China's benchmark index, which sank 12 percent earlier
this week, bounced back 3.1 percent, and Australia's market rebounded
4.4 percent, snapping a 12-day losing streak.