Rate Cut Sparks Global Market Rally

Investors pour back into markets looking for bargains with cheap money
By Jim O'Neill,  Newser User
Posted Oct 30, 2008 6:42 AM CDT
A man walks by an electric market board in Tokyo, Thursday Oct. 30, 2008. Asian stock markets rallied Thursday, led by a 12 percent jump in South Korea.   (AP Photo/Katsumi Kasahara)
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(Newser) – World markets rode the back of yesterday’s Fed rate cut to huge gains as investors began looking for bargains and flooded the exchanges with cash, reports the Guardian. Hong Kong was up 12.8%, Seoul rose 11.95%, and Tokyo saw a jump of 9.6%, its fourth largest one-day gain ever. European markets opened higher as well.

The Fed’s cut to 1% brought its benchmark rate to its lowest point since 2004. Other central banks also lowered rates, or were expected to lower them in coming days. The dollar continued to gain against the yen, recovering from a 13-year low, but lost ground to most major European currencies. One wild card in the brief euphoria could be US GDP numbers to be released today.