SINGAPORE shares rose sharply higher on Wednesday, with the key Straits Times Index leaping 3.35 per cent to 3,594.36 at closing as Asian stocks rallied on the back of the US Federal Reserve's bold move to slash interest rates by 50 basis points.

The Fed lowered its benchmark fed funds rate to 4.75 per cent and said the move was 'intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time'.

SINGAPORE
Singapore share prices closed 3.35 per cent higher in line with gains in global equity markets after the Federal Reserve cut key interest rates to bolster the US economy, dealers said.

They said investors snapped up blue-chips, particularly banks and property stocks, briefly pushing the Straits Times Index past the 3,600-point level for the first time since July 26.

The benchmark index finished up 116.61 points at 3,594.36.

Stocks like City Development, United Overseas Bank, Keppel Corp, Singapore Airlines and DBSBank led the market higher.

KUALA LUMPUR
Malaysian share prices closed 1.6 per cent higher Wednesday in line with regional bourses after the US Federal Reserve cut its key interest rate to spur the US economy, dealers said.

The Kuala Lumpur Composite Index was up 19.83 points at 1,297.16.

SEOUL
South Korean shares surged after US stocks jumped following a larger-than-expected interest rate cut by the Federal Reserve.

The Korea Composite Stock Price Index rose 57.75 points, or 3.1 per cent, to 1,896.36 in afternoon trading after rising as much as 3.5 per cent earlier.

Investors were heartened by the US central bank's move on Tuesday to cut its benchmark fed funds rate, aiming to keep a credit crunch from triggering a recession in the US economy, a key export market for South Korea.

CHINA
Chinese share prices closed 0.55 per cent down Wednesday on a technical correction with steel makers losing ground, dealers said.

They said the market was likely to fluctuate between 5,000 to 5,500 points in September after the main index gained more than 35 per cent during the July-August earnings season.

The benchmark Shanghai Composite Index closed down 29.94 points at 5,395.27 on turnover of 150.25 billion yuan (S$29.9 billion).

HONG KONG
Hong Kong share prices closed Wednesday at a record high in heavy trade after the US Federal Reserve cut its key rate by a larger-than-expected 50 basis points, triggering a liquidity-driven rally across the region, dealers said.

The Hang Seng Index closed up 977.79 points or 3.98 percent at a record 25,554.64, after moving in the range of 25,286.92 and a new all-time high of 25,648.44. Turnover was HK$138.73 billion (S$26.9 billion).

The index's previous closing high was 24,898.11, reached last Friday, while its previous all-time high was 24,978.61, also on the same day.

Hong Kong tends to track US rate moves because its currency is pegged to the US dollar.

JAPAN
Japanese share prices surged 3.67 per cent on Wednesday after the Federal Reserve slashed interest rates by a half-point to try to limit the fallout from a global credit squeeze, dealers said.

The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares gained 579.74 points to close at 16,381.54. -- REUTERS, AFP, BERNAMA

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