Markets in Asia rebound after shaky start, US surged

On Tuesday morning, markets in the Asian region were down. However, it rebounded after investors went into bargain hunting and selling pressure started to ease. Only the Malaysian market was down with 26.67 points at 832.44 after hitting an intraday low of 801.27 points. Hong Kong Hang Seng index which was very volatile in the past few days went up 14% at 12,596.29 points

Markets in Asia went down sharply in the past few weeks as fear of recession and expecting financial crisis to hit the Asian region. Japan's Nikkei closed its lowest since 26 years this week and many markets went below the 5 years low.

Yesterday, the US market rebounded sharply with the Dow Jones Industrial average surging 889.35 points or 10.9% to close above the 9,000 points level at 9,065.12. Investors in wall street were expecting key interest rates cut this week and at the same time fear that the rally may not hold. In Europe, things weren't that positive here as London's FTSE and France CAC40 Index managed to climb only 1.9% and 1.5% respectively.

"We expect the rebound, and if there is a rally, it would not be able to hold because of this short term expectations. in the longer term it is still gloomy and therefore those who got into the markets probably have very short term interests" say Benny Lee, Chief Market Strategist of NextVIEW. However, with the strong Dow rally, expect markets in the Asian region to rebound.

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