AUSTRALIA: Markets rebound despite higher inflation

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Updated January 23, 2008 21:35:10

Asian stock markets rose on Wednesday in response to the US Federal Reserve's biggest interest rate cut in almost a quarter of a century. Japan's Nikkei closed up 2 percent, while the Hang Seng in Hong Kong added 8 percent. But early trading in Europe was more subdued, and many analysts say the new American rate of 3.5 percent isn't low enough to stave off a recession, or restore market confidence. In Australia, the share market recorded its biggest gain since last August, despite inflation figures which may presage another interest rate rise.

Presenter: Corinne Podger
Speakers: Juliette Sale, market analyst with the Australian securities firm, ComSec

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