Asian Markets Rebound Overnight
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."
Jolted by worries of a global recession, the Fed on Tuesday slashed its federal funds rate three-quarters of a percentage point to 3.5 percent, the biggest reduction in this target rate for overnight loans on records going back to 1990. It also was the first time the Fed has changed rates between meetings since 2001.
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."
Jolted by worries of a global recession, the Fed on Tuesday slashed its federal funds rate three-quarters of a percentage point to 3.5 percent, the biggest reduction in this target rate for overnight loans on records going back to 1990. It also was the first time the Fed has changed rates between meetings since 2001.
Labels: Asian Markets, Hang Seng, Nikkei
posted by Stock Administrator @ 7:09 AM
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