Asia Stocks Surge After Fed Cut

Prices soar to highest levels in a month
By Peter Fearon,  Newser Staff
Posted Sep 19, 2007 5:00 AM CDT
A passer-by watches the electronic stock board of a securities company flashing the stock prices in downtown Tokyo. Japanese businessmen walk past a digital stock indicator in Tokyo Tuesday, Sept. 18,...   (Associated Press)
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(Newser) – Asian stocks rebounded after the US Federal Reserve announced a half point cut in its key lending rate in a bid to bolster growth and avoid a consumer spending slowdown. Toyota, Samsung Electronics and Honda, among those companies with the most to lose from a loss of consumer confidence, led the gains, reports Bloomberg.

The bigger-than-expected rate cut and the jump in US stocks indicates "there's a good chance the US economy will avoid a recession and that's behind this relief rally,''  said an investment strategist at a Singapore bank. A Japanese hedge fund manager said the markets are reacting "explosively" because the Fed "has put aside fears."