Asian stocks bounce back in early going

Mizuho Bank is up on Wednesday morning, on hopes of a plan for Japan's banks

By staff and wire reports

HONG KONG, China - Asian stocks bounced back after a lower open on Wednesday, with markets weighing the benefits of an overnight interest-rate cut in the United States.

The U.S. Federal Reserve Board's Open Market Committee trimmed rates by a quarter of a percentage point, the seventh such cut this year. Trimming rates typically makes stocks a more-attractive investment than other options and means better corporate profits.

But the market had factored the cut in already. U.S. investors were disappointed with the Fed's tone for the future, pushing the Dow Jones industrial average down 1.4 percent.

The Nasdaq slumped 2.7 percent.

Japan stocks had a weak start but bounced back in late morning Wednesday, with the Nikkei 225 index rising 1.3 percent to 11,428.31.

Old Economy and bank stocks were the main movers, putting the index on a firm footing.

The broader Topix index was up a more-muted 0.7 percent at 1,166.98.

Mizuho up in early trade

The largest bank in the world by assets, Mizuho Holdings Inc., shot up 3.2 percent to 485,000 yen. Traders are hoping for a more-specific solution soon to the problem of Japan's bad loans.

Circuit maker Kyocera Corp. rose 0.4 percent to 7,640 yen. The Nihon Keizai Shimbun said its operating profit would fall to $835 million (100 billion yen_ due a sharp sales slump.

Stocks in South Korea rallied from a stumble at the open. By late morning, the benchmark Kospi was up 0.3 percent at 570.27.

Nasdaq's fall was weighing on the biggest stock in Korea, world memory chip No. 1 Samsung Electronics.

Taiwan's Taiex was down in morning trade, off 0.1 percent at 4,558.52.

Stocks in Singapore were also off at the open, with the Straits Times index falling 0.1 percent to 1,629.41.

In Hong Kong, the Hang Seng saw heavy losses at the open, falling 1.7 percent to 11,249.74.

Reuters contributed to this report.