This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7208316.stm

The article has changed 14 times. There is an RSS feed of changes available.

Version 1 Version 2
US plan sparks Asia shares rally Global share rebound continues
(about 4 hours later)
Asian stocks have risen sharply, with investors cheered by a White House plan to spend $150bn (£76bn) to revive the flagging US economy. European and Asian stocks have risen on optimism that the White House and the Federal Reserve will steer the world's largest economy out of a recession.
With millions of US consumers due to get tax rebates, the hope is that a US recession will be prevented and so demand for Asian goods will not slow. A US plan to spend $150bn (£76bn) reviving its economy helped to send the UK's FTSE 100 index up 1%, while Germany's Dax index added 2.55%.
The benchmark index in Hong Kong, the Hang Seng, jumped 5%, while Japan's Nikkei 225 gained 4%. The move came days US rates were cut to 3.5% from 4.25% and amid talk of a rescue plan for bond insurers.
The rally follows rises on Wall Street, with the Dow Jones climbing 0.9%. Earlier Asian stocks made gains, with Japan's Nikkei 225 closing up 4%.
The rebound followed a volatile week on world financial markets, which saw hefty losses on Monday and Tuesday, before a recovery began on Wednesday. Relief rally
Japan's Nikkei 225 ended up 536 points, or 4%, at 13,629.2, while Hong Kong's Hang Seng was trading up 1,254 points, or 5.3% at 24,793. With millions of US consumers set to get tax rebates, the hope is that a US recession will be prevented and the risk of those problems spreading to other key global economies will be minimised.
Stock markets in South Korea, Taiwan, the Philippines and Australia also rose. The US has done many things to stabilise the market but all the bad news is not yet out there Heinz-Gerd Sonnenschein, Postbank
"The markets are reacting to news that Bush and Congress have agree to accelerate tax rebates for US consumers so they can go out and buy more exports from Asia," said Francis Lun, a general manager at Fulbright Securities. Relief at key White House measures, in addition to the Fed cutting US interest rates by the biggest amount in two decades, overshadowed a massive fraud at French bank Societe General.
A rogue trader has been accused of creating a loss of 4.9bn euros, but confidence in banks worldwide appeared to be unaffected.
Shares in Societe General rose 1.7% earlier after a sell-off on Thursday.
An upbeat trading forecast from L'Oreal, the world's biggest beauty group, also helped to calm nerves after a number of recent profit warnings.
But analysts expected more volatility in the short term.
"We expect sharp gains and losses in the next few days and weeks," said Heinz-Gerd Sonnenschein, a strategist at Postbank in Germany.
"The US has done many things to stabilise the market but all the bad news is not yet out there."
Stimulus measuresStimulus measures
On Thursday, the White House and the Democrats in Congress agreed a package of measures to boost economic growth in the US, where fears of a recession have risen.On Thursday, the White House and the Democrats in Congress agreed a package of measures to boost economic growth in the US, where fears of a recession have risen.
This included a tax rebate to some 117 million US homes of up to $600 for individuals and up to $1,200 for married couples.This included a tax rebate to some 117 million US homes of up to $600 for individuals and up to $1,200 for married couples.
House of Representatives Speaker Nancy Pelosi said Congress would act on the deal "at the earliest date, so those rebate cheques will be in the mail".House of Representatives Speaker Nancy Pelosi said Congress would act on the deal "at the earliest date, so those rebate cheques will be in the mail".
Couples with children will also get an extra $300 per child.
The tax rebates for households should total $100bn, while businesses will benefit from up to $50bn of tax cuts.The tax rebates for households should total $100bn, while businesses will benefit from up to $50bn of tax cuts.
"Because the country needs this boost to the economy now, I urge the House and the Senate to enact this economic growth agreement into law as soon as possible," said President George W Bush."Because the country needs this boost to the economy now, I urge the House and the Senate to enact this economic growth agreement into law as soon as possible," said President George W Bush.
The agreement came two days after the Federal Reserve slashed US interest rates to 3.5% from 4.25%, its biggest cut in 25 years. Asia boost
Economists say the package needs to be put into action as soon as possible, before it is too late to help the economy. Many Asian economies are still closely tied to US demand for their exports despite the development of China as a major importer.
So fresh hopes that the US consumer will carry on spending lifted shares across the board from financial firms to carmakers and technology stocks.
The benchmark index in Hong Kong, the Hang Seng, closed up 6.7% at 25,122.37, while Japan's Nikkei 225 rose 4% to end at 13,629.2.
Stock markets in South Korea, Taiwan, the Philippines and Australia also rose.