This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6954433.stm

The article has changed 10 times. There is an RSS feed of changes available.

Version 3 Version 4
Asian markets rebound on Fed move Global stocks boosted by Fed move
(30 minutes later)
Asian stocks rose on Monday, regaining some ground after the US Federal Reserve cut a key bank lending rate. World stocks rose on Monday, regaining some ground after the US Federal Reserve cut a key bank lending rate.
US and European markets stabilised on Friday after the Fed cut the rate at which it lends to banks in an effort to stem the heavy losses in world markets. London's FTSE 100 index was up 0.46% by 0845BST, Germany's Dax-30 added 0.53%, and France's Cac-40 gained 0.89%.
Japan's Nikkei share index was up by 3% in Monday trade, while Hong Kong's Hang Seng index was ahead by 3.6%. Earlier, Japan's Nikkei share index had closed 3% up, while Hong Kong's Hang Seng index was ahead 3.6%.
US and European markets had stabilised on Friday after the Fed cut the rate at which it lends to banks in an effort to stem the heavy losses in world markets.
The Nikkei had seen its biggest one-day fall in nearly six years on Friday, and other Asian markets had also slumped.The Nikkei had seen its biggest one-day fall in nearly six years on Friday, and other Asian markets had also slumped.
People still feel the market isn't really stable Kingston Lin, Prudential Brokerage.People still feel the market isn't really stable Kingston Lin, Prudential Brokerage.
At close the Nikkei was at 15,732.48 points, up 458.80 points, or 3.00%, from Friday. At Monday's close, the Nikkei was at 15,732.48 points, up 458.80 points, or 3%, from Friday.
South Korean shares also surged ahead, with its Composite Stock Price Index closing up 5.7% at 1,731.27, its biggest percentage gain in more than five years, according to the Korea Exchange.South Korean shares also surged ahead, with its Composite Stock Price Index closing up 5.7% at 1,731.27, its biggest percentage gain in more than five years, according to the Korea Exchange.
Australian shares closed up 4.6% and Chinese stocks were ahead by 5.33%.Australian shares closed up 4.6% and Chinese stocks were ahead by 5.33%.
Financial stocks, which had been hardest hit in the recent sell-off, led the Asian rebound, pushing MSCI's index of Asian financial stocks up 5.3%.Financial stocks, which had been hardest hit in the recent sell-off, led the Asian rebound, pushing MSCI's index of Asian financial stocks up 5.3%.
India's benchmark share index opened 2.6% higher on Monday, tracking other Asian markets.India's benchmark share index opened 2.6% higher on Monday, tracking other Asian markets.
At open of trade in Europe the FTSE in London was ahead 0.46%, the Dax in Frankfurt by 0.53%, and the Cac in Paris by 0.89%.
CautionCaution
The recent market turmoil had been triggered by a wave of mortgage defaults in the US as the housing market slowed dramatically. The recent market turmoil has been triggered by a wave of mortgage defaults in the US as the housing market slowed dramatically.
Markets across Europe and Asia were similarly buffeted on fears of a wider crisis in the financial system due to the huge liabilities of banks and other financial companies linked to the unstable sub-prime mortgage sector.Markets across Europe and Asia were similarly buffeted on fears of a wider crisis in the financial system due to the huge liabilities of banks and other financial companies linked to the unstable sub-prime mortgage sector.
"Investor confidence has recovered a bit. Still, there are lingering worries over when the sub-prime crisis will actually end," said George Hsieh, who manages $545m for Capital Securities Investment Trust in Taiwan."Investor confidence has recovered a bit. Still, there are lingering worries over when the sub-prime crisis will actually end," said George Hsieh, who manages $545m for Capital Securities Investment Trust in Taiwan.
The Reserve Bank of Australia injected $2.67bn into the banking system to ward off pressure on some short-term market interest rates.The Reserve Bank of Australia injected $2.67bn into the banking system to ward off pressure on some short-term market interest rates.
The Asian share gains were at levels last seen in April 2003, but some investors remained wary of the credit crisis.The Asian share gains were at levels last seen in April 2003, but some investors remained wary of the credit crisis.
"People still feel the market isn't really stable," said Kingston Lin, associate director at Prudential Brokerage."People still feel the market isn't really stable," said Kingston Lin, associate director at Prudential Brokerage.
"There's buying, but I think other people are selling into the rally. It's not safe to be aggressive.""There's buying, but I think other people are selling into the rally. It's not safe to be aggressive."