By Goh Eng Yeow, Markets Correspondent

ONE of the biggest one-day rallies in stock market history rolled across global bourses yesterday as investors bet on a US$500 billion (S$717 billion) United States plan to fix the credit crunch crisis.

The plan, dubbed the largest bailout ever, involves buying toxic bank assets in the hope of freeing up credit markets. It triggered an astonishing share price rebound that left old market hands shaking their heads in disbelief.

The drivers came from three directions. In London, Sydney and New York, regulators have imposed wide-ranging bans on short-sellers, blamed for aggravating the global market meltdown. They sell shares they do not actually own, hoping to cash in on falling prices.

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