Global Markets Soar After Fed’s Rate Cut

European markets rise: DAX (0.8%), CAC 40 (1.3%), FTSE 100 (0.9%).Asian markets see gains; Nikkei 225 (2.1%), Hang Seng (2%), Shanghai Composite (0.7%). Major stocks in Asia soar: Toyota (5.1%), Sony (2.9%), Hitachi (5.8%).Wall Street futures higher: S&P 500 (1.3%), Dow Jones (0.8%)

New York: Markets in Europe and Asia shot higher on Thursday after the Federal Reserve kicked off its efforts to prevent a recession in the US with a bigger-than-usual cut to interest rates.US futures were higher after a lackluster response on Wall Street to the Fed's move the day before. The future for the S&P 500 jumped 1.3 per cent and that for the Dow Jones Industrial Average was up 0.8 per cent. Germany's DAX added 0.8 per cent to 18,861.88 and the CAC 40 in Paris advanced 1.3 per cent to 7,541.50. In London, the FTSE 100 gained 0.9 per cent to 8,326.93.

In Asian trading, Tokyo's Nikkei 225 index rose 2.1 per cent to 37,155.33, lifted by major export manufacturers' shares. Toyota Motor Corp. surged 5.1 per cent, Sony Group Corp. added 2.9 per cent and Hitachi Ltd. climbed 5.8 per cent. Hong Kong's Hang Seng gained 2 per cent to 18,013.16. The Shanghai Composite index climbed 0.7 per cent to 2,736.02, while Taiwan's Taiex closed 1.7 per cent higher. South Korea's Kospi rose 0.2 per cent to 2,580.80. The Bank of Japan and the Bank of England are also holding monetary policy meetings this week. Neither central bank is expected to move on rates, though the language of what the officials say could be an indicator of later moves and still influence markets. Because the Fed's half-percentage point rate cut was so well telegraphed, markets had already climbed in anticipation. So, Wall Street's reactions to the 180-degree turn on its policy rate were relatively muted.