Asian markets soar on central bank action
Central bank action on the mounting eurozone crisis
boosted stock markets around the world Thursday, as
Asian indices rose sharply in morning trading following
strong gains in Europe and the United States.
In a coordinated move with other central banks, the U.S.
Federal Reserve cut the penalty rate it charges on liquidity
from 100 to 50 basis points, averting a liquidity crisis and
boosting financial markets.
China also made a decisive move towards easier
monetary policy, cutting the proportion of deposits that
banks must hold in reserve with the central bank.
Markets across the region responded positively. In
mid-morning trading, the Nikkei was up 2.04%, the
Shanghai Composite rose 1.98%, South Korea's Kospi
gained 3.8% and Australia ASX 200 added 2.5%.
The best performer in the region was the Hang Seng,
which surged 5.6%.