Asian stock markets rallied on Thursday following the US Federal Reserve’s surprise interest rate cut. The move by the Fed, designed to stave off a potential recession in the US, boosted investor confidence across the region.

Japan’s Nikkei 225 index led the charge, climbing sharply in early trading. Other major markets, including Hong Kong’s Hang Seng and South Korea’s Kospi, also saw significant gains.

Analysts attributed the positive market reaction to the belief that the rate cut would help to stabilize the global economy and encourage investment. A weaker dollar, resulting from the rate cut, also benefited export-oriented companies in the region.

However, some cautioned that the rally might be short-lived, given the underlying economic uncertainties in the US. The long-term impact of the rate cut remains to be seen, and further volatility is expected in the coming months.

Key Market Movements:

• Nikkei 225: Up X%
• Hang Seng: Up Y%
• Kospi: Up Z%

The rate cut has also impacted currency markets. The impact on individual sectors is still being assessed, but initial indications suggest a positive outlook for technology and manufacturing stocks.