Asian markets salute steep Fed cut with rally

Asian shares rallied on Wednesday with Hong Kong jumping 7 percent after the Federal Reserve's biggest interest rate cut in over two decades tempted investors to beaten-down equities, but recession fears lingered. The dollar extended its losses against the euro in early Asian trade after the Fed's emergency 75 basis-point interest rate cut wiped out the U.S. currency's yield advantage over the euro. Industrial metals, such as copper recovered some lost ground after hefty falls this week on fears a U.S. recession could derail demand, while safe-haven government bonds extended gains to fresh multi-year highs.

The Economic Times
http://economictimes.indiatimes.com/
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Indian economy on track despite global turmoil

India’s economy may lose a bit of steam in coming months but will remain on track for strong growth despite global market turmoil and mounting fears of a US recession, analysts say.The Asian giant’s expansion will remain far above anaemic growth in the West thanks to high savings and investment rates and strong domestic demand driven by its 1.1-billion-strong population, experts say. While the World Bank forecasts average global growth for this year at a high of 3.3%, an Indian government advisory panel last week predicted 8.9% growth for this financial year to March 2008, slowing to 8.5% the following year. Last year, India’s economy grew by 9.4%, second only to China’s scorching expansion for 2007 forecast at around 11.7%.

MINT

http://www.livemint.com/2008/01/
23102922/Analysts-say-Indian-economy-on.html