Asian markets surge after US rate cut

Asian markets rebounded strongly today, reversing their gut-wrenching plunge as investors welcomed a hefty, surprise interest rate cut by the US Federal Reserve to shore up the sagging American economy.

But analysts said volatile swings were expected to linger in regional trading for some time because the Fed’s quick action, at an emergency meeting yesterday, was seen by some traders as a sign American authorities view the US credit crunch as a very serious problem.