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| Version 1 | Version 2 |
|---|---|
| Asian markets lift after Fed cut | Asian markets lift after Fed cut |
| (about 2 hours later) | |
| Asian markets have continued a rally started in the US after its Federal Reserve cut interest rates by 0.75%. | Asian markets have continued a rally started in the US after its Federal Reserve cut interest rates by 0.75%. |
| In Japan the Nikkei jumped 2.5%, while shares in Australia rose 4%, and those in India and South Korea by 2%. | In Japan the Nikkei jumped 2.5%, while shares in Australia rose 4%, and those in India and South Korea by 2%. |
| On Wall Street on Tuesday, the Dow Jones stock index recovered from recent losses and registered its biggest one-day gain for more than five years. | On Wall Street on Tuesday, the Dow Jones stock index recovered from recent losses and registered its biggest one-day gain for more than five years. |
| The Fed's action was aimed at averting panic after the cut-price takeover of troubled investment bank Bear Stearns. | The Fed's action was aimed at averting panic after the cut-price takeover of troubled investment bank Bear Stearns. |
| It was forced into a fire sale to rival JP Morgan Chase for a fraction of its value, in order to avoid collapse. | It was forced into a fire sale to rival JP Morgan Chase for a fraction of its value, in order to avoid collapse. |
| class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAYThe people who got into trouble are those that bought houses beyond their meansMarcus, Colombia class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=4488">Send us your commentsBear Stearns has been one of the highest-profile victims of the subprime mortgage crisis, and subsequent global credit crunch. | |
| US Treasury Secretary Henry Paulson admitted on Tuesday that the US economy was currently facing a "sharp decline", but hoped for a recovery later in the year. | US Treasury Secretary Henry Paulson admitted on Tuesday that the US economy was currently facing a "sharp decline", but hoped for a recovery later in the year. |
| The Fed has now lowered rates six times since mid-September, with the economy reeling from a credit crisis triggered by a slump in the US housing market. | The Fed has now lowered rates six times since mid-September, with the economy reeling from a credit crisis triggered by a slump in the US housing market. |
| Losses recouped | Losses recouped |
| Japan's benchmark Nikkei index fell to a 31-month low on Monday. | Japan's benchmark Nikkei index fell to a 31-month low on Monday. |
| The Federal Reserve has stepped in to try and stave off recession | The Federal Reserve has stepped in to try and stave off recession |
| But by the end of morning trading on Wednesday, a substantial amount of those losses had been recouped, says the BBC's Chris Hogg in Tokyo. | But by the end of morning trading on Wednesday, a substantial amount of those losses had been recouped, says the BBC's Chris Hogg in Tokyo. |
| Japanese banks, whose share prices were damaged by the credit crunch, performed well in early trading. | Japanese banks, whose share prices were damaged by the credit crunch, performed well in early trading. |
| The nerves of Japanese bank sector investors were soothed by better than expected results from two big US institutions on Tuesday. | The nerves of Japanese bank sector investors were soothed by better than expected results from two big US institutions on Tuesday. |
| Goldman Sachs and Lehman Brothers, reported smaller falls in profits than analysts had been expecting. | Goldman Sachs and Lehman Brothers, reported smaller falls in profits than analysts had been expecting. |
| But analysts are warning of more volatility ahead, our correspondent says. | But analysts are warning of more volatility ahead, our correspondent says. |