Asian markets stabilize after Australia's rate cut

Asian markets showed signs of life on Tuesday as investors cheered a big interest rate cut by the Australian central bank aimed at alleviatin
g the unfolding global credit crisis.

A late rally on Wall Street that pared earlier huge losses also gave investors a bit of sorely needed confidence, analysts said. Citing ``heightened instability'' in markets, the Reserve Bank of Australia slashed its key rate by 1 full percentage point to 6 per cent. Analysts had expected a half-point cut. The move sent Sydney's S&P/ASX-200 index up 1.7 per cent to 4,618.7 after opening down 3.7 per cent.

Other markets seemed to react positively to the bold move: Main indices in South Korea, Singapore and Taiwan all edged higher, perhaps staunching a global market sell-off on Monday.

Japan's benchmark Nikkei 225 index erased some of its early losses to closed down 3 per cent at 10,155.90. Earlier, it had plunged over 5 per cent to below 10,000 for the first time in almost five years.

Source: EconomicTimes