Asian markets surge on U.S. rate cut

Asian markets climbed higher on Thursday, bolstered by Wall Street's overnight rally

HONG KONG, China -- Markets throughout Asia charged higher on Thursday, bolstered by a surprise rate cut by the U.S. Federal Reserve.

In Tokyo, the rate cut sparked active buying in NEC Corp and other bellwether tech issues, boosting the Nikkei average by 1.66 percent to end at 13,868.28.

The broader TOPIX index closed1.33 percent higher to 1,337.92.

In Hong Kong, the Hang Seng Index closed up more than 4 percent, or 576.15 points, at 13,548.95 as investors scooped up telecoms and property counters.

South Korea's share index rose more than 4 percent to close at the highest level in more than five weeks, powered by gains made by tech and financial issues.

In Taiwan, stocks closed nearly two percent higher, buoyed by a surge in electronics issues.

The South Korean benchmark KOSPI finished up 4.32 percent at 563.31, while the over-the-counter Kosdaq ended up 3.75 percent at 74.90. The TAIEX, on the other hand, closed up 1.81 percent at 5,608.50.

In Australia, shares moved decisively higher as investors chased stocks they expect to do best out of lower interest rates such as media. The S&P/ASX 200 index finished up 1.4 percent at 3,324.2.

Tech stocks surge

In Tokyo, buying was concentrated on major chip and electronics makers, with major PC and chipmaker NEC Corp shooting up 5.9 percent to 2,155 yen, Fujitsu Ltd firming 5.29 percent to 1,750 yen, and Sony Corp ticking up 3.24 percent to 9,250.

"Greenspan's cut was a wonderful thing. It has instilled Tokyo investors with a greater confidence the U.S. economy and markets will recover," said Nobuaki Kurisu, chief fund manager at Sumisei Global Investment Trust Management.

"And this is most important to Japan's technology sector and other major exporters," he added.

In Hong Kong, China Unicom and China Mobile rose 7.73 percent to HK$11.15 and 6.54 percent to HK$39.10, respectively, while diversified conglomerate Hutchison Whampoa climbed 4.69 percent to HK$89.25.

The Internet and telecom play Pacific Century CyberWorks rose 3.74 percent to HK$2.775.

In South Korea, memory chip giant Samsung Electronics climbed 9.81 percent to 235,000 won, while rival chipmaker Hynix semiconductor soared by the upper daily limit to 3,205 on the top volume of 58.9 million shares.

Financial shares likewise pushed higher, in anticipation of another 25 basis points rate cut at the Fed's next meeting on May 15.

Domestic brokerage Samsung Securities was up 11.46 percent to 35,500 and Daewoo Securities jumped 6.4 percent to 8,750.

In Taiwan, dominant electronics shares surged 2.56 percent, with world microchip foundry leader Taiwan Semiconductor Manufacturing Co up the daily seven percent limit at T$90.50.

Overall sentiment turned bullish after U.S stocks soared on Wednesday when the Fed unexpectedly slashed interest rates for the fourth time this year to revitalize the sluggish U.S. economy.

As a result, the technology-laced Nasdaq Composite Index surged 8.12 percent to 2,079.44, while the Dow Jones industrial average jumped 3.91 percent to 10,615.83.

Reuters contributed to this report.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.