HONG KONG, Oct 28: Asian markets staged a massive rebound on Tuesday, with Hong Kong soaring more than 14 per cent, as bargain hunters stepped in a day after stocks sustained heavy losses.

Shares were also helped by a falling yen and the likelihood that the US Federal Reserve will cut interest rates in a bid to ease pressure on the slowing economy later this week.

Despite continuing worries over a global recession Hong Kong leapt 14.4 percent -- snapping a five-day losing streak -- the day after plummeting almost 13 per cent. The Nikkei finished 6.41 per cent higher after falling to a 26-year low below the psychological 7,000 point level during the day.

However, markets are still down sharply since the start of the year. The Nikkei has lost 50.2 per cent in 2008 while Hong Kong’s Hang Seng is about 55 per cent lower.

The rebound followed a sharp fall on Wall Street overnight where stocks lost 2.42 per cent despite news that the US Treasury was preparing to inject some $125 billion into nine major banks this week as part of a rescue plan.

Elsewhere Wellington lost 3.29 percent, Kuala Lumpur closed 3.1 per cent down, Manila was 0.5 per cent off, while Jakarta gave up 4.7 per cent.

Mumbai’s market was to open for just an hour from 1245 GMT due to Diwali celebrations.

TOKYO: Japanese stocks soared 6.4 per cent.

The Nikkei ended up 459.02 points at 7,621.92, snapping a four-day losing streak.

The broader Topix index of all-first section shares rose 37.57 points, or 5.03 per cent, to 784.03

Dealers said that public pension funds were buying blue chips such as Toyota Motor, which rose 7.8 per cent to 3,170 yen. Sony gained 175 yen, or 9.6 per cent, to 1,996 yen.

Honda Motor soared 14 per cent to 2,065 yen. After the close Honda said net profit slipped 19.1 per cent in the first half and it cut its full-year forecasts.

HONG KONG: Shares closed up 14.4 per cent.

The benchmark Hang Seng Index rose 1,580.45 points to 12,596.29. Turnover was 66.1 billion Hong Kong dollars (8.47 billion US).

Investors piled money into financial stocks, including index heavyweight HSBC and major Chinese banks, in what traders described as a scramble for quality blue chips for long-term holding. Some dealers said the dramatic rise was a sign that the market had hit its lowest value.

Even a dead cat bounces, YK Chan, a fund manager at Phillip Asset Management, told Dow Jones Newswires.

SYDNEY: Australian share prices closed down 0.4 per cent.

The benchmark S&P/ASX200 fell 14.6 points to 3794.6, while the broader All Ordinaries lost 12.9 at 3755.4.

A total of 1.43 billion shares worth $4.37 billion (US$2.6 billion) changed hands.

Australian prices had dropped 1.7 per cent by midday on a lower Wall Street before staging a comeback in afternoon trading.

BHP Billiton gained 3.09 percent to 25.36 dollars and Rio Tinto was up 5.57 per cent to 68.25.

National Australia Bank dropped 4.26 per cent to 22.90 and Commonwealth Bank of Australia off 1.6 per cent at 39.38.

SINGAPORE: Singapore share prices closed 4.14 percent higher.

The main Straits Times Index rose 66.21 points to 1,666.49, reversing a sharp fall earlier in the day, but analysts said sentiment remained weighed down by a bleak economic outlook. Volume traded was 1.49 billion shares worth 1.44 billion Singapore dollars (955.69 million US).

KUALA LUMPUR: Malaysian shares recovered slightly to close 3.1 per cent lower.

The Kuala Lumpur Composite Index shed 26.67 points to end the day at 832.44.

JAKARTA: Indonesian shares slumped 4.7 per cent.

The Jakarta Composite Index dropped 55.01 points to 1,111.39.

Palm oil company Astra Agro lost 9.8 percent to 4,600 rupiah on expectations of poor fourth-quarter earnings due to falling palm oil prices, while Bank Mandiri dropped 9.7 percent to 1,210 rupiah on a poor outlook for fourth-quarter earnings.

Bucking the trend, tin miner Timah rose 9.9 percent to 1,000 rupiah on bargain hunting.

WELLINGTON: New Zealand share prices closed down 3.29 per cent. The benchmark NZX-50 index fell 91.44 points to close at 2,687.10 -- the lowest level since July 2004.

Market leader Telecom slipped four cents to finish at 2.27 dollars, New Zealand Oil and Gas shed one cent to 1.21 and Fletcher Building dropped 27 cents to 5.53. Contact Energy closed 21 cents lower at $6.64.—AFP