Asia-Pacific markets gain; Europe, US see declines

Hong Kong’s Hang Seng index soared 2,332 points, or 10.72 percent, Wednesday to 24,090.17. The gains came after Tuesday’s interest rate cut from the US Federal Reserve and a similar cut today from the Hong Kong Monetary Authority, to 5 percent from 5.75 percent.

Most other Asia-Pacific equities markets followed the Hang Seng higher although Taiwan’s Taiex index dropped 2.29 percent to 7,408.4. In South Korea, the Kospi index was 1.21 percent higher to 1,628.42. The Shanghai Composite was 3.14 percent higher to 4,703.05 while the FTSE Straits Times Index added 4.08 percent to 2,983.62 in Singapore. Australian markets ended 12 consecutive days of declines when the Sydney Ordinaries gained 4.28 percent to 5,445.6 and the S&P/ASX200 jumped 4.35 percent to 5,412.3. In India, the Sensex was 5.17 percent higher to 17,594.07.

In Tokyo, the Nikkei 225 was up 3.04 percent to 12,829.06 while the Topix index added 2.46 percent to 1,249.93 and the Mothers market gained 1.92 percent to 619.85. Higher gains early in the session were cut by continuing worries about a possible recession in the United States. Shippers and carmakers were up, but the electronics sector was mixed.

European markets were not as impressed by the rate cut in the US, dropping again on the day. The FTSE Eurofirst 300 was 2.8 percent lower to 1,267.8. The CAC-40 fell 4.25 percent to 4,636.76 and Madrid’s IBEX was down 4.56 percent to 12,254.6 while the Dax dropped 4.88 percent to 6,439.21. Among the few gainers were airlines and the pharmaceuticals sector. Utilities, the oil sector, and car and truck makers saw declines.

London’s markets also saw declines. The FTSE 100 was down 2.28 percent to 5,609.3 while the FTSE 250 was 1.24 percent lower to 9,493.7. Airlines, banks, and cruise operators were up on the session while the oil sector was mixed.

Wall Street was lower in early afternoon trade on the ongoing pessimism of investors despite Tuesday‘s move by the Fed. The Dow Jones Industrial Average was down 1.44 percent to 11,798.86, up from earlier lows but still down almost 175 points from Tuesday’s close. Meanwhile, the Nasdaq Composite was 2.8 percent lower to 2,227.99 and the S&P 500 had dropped 1.74 percent to 1,287.76. Mobile phone manufacturers saw declines on the session on disappointing news on sales and profits.

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