Asian Markets Soar After Fed's Rate Cut

Stocks see biggest jump in 5 years as panic gives way to optimism
By Kevin Spak,  Newser Staff
Posted Aug 20, 2007 1:00 AM CDT
Chinese investors gather near computers displaying stock information at an exchange in Liaoyuan, northeastern China's Jiliin province, Thursday Aug. 2, 2007. China's surging shares rebounded Thursday...   (Associated Press)
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(Newser) – The global equities sell-off ground to a halt today as Asian stocks had their biggest gains in five years. Responding to Friday’s cut in the US Federal Reserve’s discount rate, Japan’s Nikkei 225, Hong Kong's Hang Seng and South Korea's Kospi indexes all saw huge gains as panic over the US subprime mortgage crisis largely subsided.

Morgan Stanley’s Asia-Pacific Index climbed 4.2%, its biggest hike since 2002, after losing 8% last week. Though most stocks are still down since the sell-off began, optimism was widespread, with analysts declaring that global markets would see growth in spite of the US credit issues.