6:00AM New York, 6:00PM Hong Kong - Hong Kong stock index surged 10% in record one day rise. Analysts predicted that the rally may falter in the weeks ahead.

Hong Kong stock indexes soared on record one-day rise led by financial and realty stocks after the U.S. Federal Reserve slashed its benchmark interest rate. The magnitude of the rate cut surprised the market. The sharp rise in the market averages may not sustain in the coming weeks if the U.S. economy continues to weaken.

In Hong Kong trading Hang Seng Index climbed from a two-day 14% decline to close up 11% or 2,332.54 to 24,090.17, the steepest ascent since 1998, while the Hang Seng China Enterprises Index rose 11% or 1,367.62 to 13,279.53, the most since September 1998.

Daily turnover on the main-board was HK$156.4 billion compared to HK$155.8 billion yesterday.

All stocks on the 43-member Hang Seng Index advanced.

Hong Kong Monetary Authority today cut its key rate to 5% from 5.75% in tandem with the U.S. Federal Reserve which slashed its benchmark rate o 3.5% from 4.25%.

HSBC Holdings, Standard Chartered Bank and the Bank of East Asia also cut rates by 75 basis points to 6%, sparking expectations that this will encourage economic growth.

Analysts at Credit Suisse and Celestial Asia Securities Holdings said today’s rally may be short-lived.

Realty stocks rose on expectations that demand for real estate in Hong Kong will rebound after the cut in the base rate by the U.S. Federal Reserve. Sun Hung Kai soared 9.3% to HK$154.90, Cheung Kong Holdings Limited climbed 10% to HK$130 and Hang Lung gained 9.9% to HK$29.50.

Financial stocks also rallied. Bank of Communications surged or 13% to HK$8.90 after reporting today that profit rose more than 60% in 2007, and earnings growth to Rmb 12.55 billion in 2006.

Bank of China added 8.1% to HK$3.33 after dismissing reports in The South China Morning Post newspaper that the bank may post a loss due to investments in subprime mortgages, adding that profits rose last year.

HSBC reversed a three-day 12% decline to close up 11% to HK$116.20.

Jiangxi Copper Co. plunged 19% to HK$16.60, its biggest drop since January 1998, after the shares ended a week-long suspension. The Company halted trading last week to announce a plan to sell Rmb 6.8 billion of bonds with warrants.

China Unicom surged 15% to HK$17.04 after Goldman Sachs lifted its rating on the stock from ``neutral,’’ to “buy. China Mobile, the world''s largest cellular operator rose 10.5% to HK$120.3

New World Development Co.''s public works and transportation arm, added 4.1% to HK$19.80. PetroChina Co Limited closed up17.5% to HK$11.


5:00AM New York, 7:00PM Tokyo - Financial stocks, shipping lines and carmakers lift Tokyo up 2.04%.

Stocks in Tokyo recovered from their worst two-day decline in more than a decade buoyed by emergency rate cut in the U.S.

In Tokyo trading Nikkei 225 rose 2.04% or 256.01 to 12,829.06, while the broader Topix soared 29.98 to 1,249.93. Both benchmarks tumbled 5.7% yesterday and lost more than 10% in a two-day sell-off.

In the first section of the Tokyo Stock Exchange 10.3 billion shares worth 1.1 trillion yen were traded and in the second section 527 million shares worth 6 billion yen changed hands.