Most stock markets in the Asia Pacific region receiveda boost yesterday after monetary authorities in Hong Kong, South Korea and Taiwan cut borrowing rates.

Mirroring co-ordinated moves led by the US Federal Reserve and China on Wednesday, the Hong Kong Monetary Authority lowered its main rate by 50 basis points to 2 per cent, while the Bank of Korea and Taiwan's Central Bank of China both lowered by 25 basis points to 5 per cent and 3.5 per cent respectively.

Hong Kong advanced 3.3 per cent to 15,943.24, having suffered an 8.2 per cent fall on Wednesday, the worst one-day loss since 1973.

Telecommunications operator China Mobile gained 4.4 per cent to HK$69.40, rebounding after the sell off in the sector. China Communications Services , which builds phone networks on the mainland, rose 14.8 per cent to HK$3.72 after dropping by a third on Wednesday over concerns about the effects of new transmitter tower-sharing regulations.

The world's biggest bank by stock market capitalisation, Industrial & Commercial Bank of China , advanced 7.1 per cent to HK$4.07.

HSBC , the second biggest bank by stock market capitalisation, rose 2.1 per cent to HK$118.20.

The London-based global bank, said on Wednesday that it had no need for assistance from the UK government's £400bn ($687bn) rescue plan for the country's banks.

Property groups gained on hopes lower rates will stimulate demand for new homes. Henderson Land rose 2.5 per cent to HK$28.40.

In Japan, banks and consumer electronics companies made big gains but weaker pharmaceutical and retail stocks dragged the Nikkei 225 average down from earlier highs, leaving the benchmark 0.5 per cent lower at 9,157.49, extending its five-year low. The broader Topix index, however, ended 0.7 per cent higher at 905.11.

A half-year loss of Y16bn pushed Aeon , the supermarket owner, down by the daily limit. It lost 10.5 per cent to Y850. Seven & I , which runs 7-Eleven convenience stores, fell 8.4 per cent to Y2,410 in spite of announcing a 3 per cent gain in quarterly profit.

Fast Retailing , one of the few stocks to have risen this year, dropped 7.3 per cent to Y9,560 after reports suggested it may issue preferred shares to diversify its sources of funds and pay for acquisitions.

Takeda Pharmaceutical dropped 5.5 per cent to a 52-week low of Y4,660 after the company said cuts in drug prices would affect domestic sales.

Exporters of consumer electronics benefited from the weaker yen. Sony rose 5.7 per cent to Y2,520 and Canon gained 4.1 per cent to Y3,330. The gamesmaker Nintendo jumped 12.9 per cent to Y35,000.

The Kospi index in South Korea ended 0.6 per cent higher at 1,294.89, after a volatile day.

The memory chip and consumer goods company Samsung Electronics rose 3 per cent to Won544,000. LG Electronics , a maker of mobile phones, rose 4.8 per cent to Won109,500. The steel company Posco gained 1.6 per cent to Won370,000.

Taiwan, however, found little solace from the monetary easing, with financial stocks leading the main Taiex index down 1.5 per cent to a fresh five-year low of 5,130.71.

Australia's S&P/ASX 200 index fell 1.5 per cent to a three-year closing low of 4,320.90 as the benefits of the central bank's one percentage point cut in interest rates on Tuesday wore off.

Indonesia remained closed for a second day after trading was suspended following falls of more than 10 per cent twice this week. India was closed for a holiday.

Source:ft.com