Asian stocks rise after US rate cut

0 Comments | AFP, January, 2008

HONG KONG (AFP) — Most Asian stock markets rose Thursday after another sharp US interest rate cut but Japan's rally aside, gains were modest due to worries that a US economic recession still looms.

The Federal Reserve chopped borrowing costs by 0.50 percentage points to 3.00 percent Wednesday, following an emergency cut last week during a global stocks meltdown, but the latest move failed to excite many Asian markets.

One exception was Japan's bourse, the biggest in Asia, which fell in early trade before rallying to close up 1.85 percent. But Tokyo's Nikkei-225 index remains around seven percent underwater since the start of the year.

Investors fret that Japan's economy will suffer as exports to the ailing US dry up. Official data released Wednesday showed...