Asia Stocks Surge After Fed Cut

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." (More Asian markets stories.)