Asian markets leapt Wednesday in a recovery after a two-day selloff, led by 11% gains in Hong Kong, as short sellers got squeezed at the open after a surprise 75 basis point interest rate cut overnight in the U.S. and expectations that the Federal Reserve will cut another 50 basis points also helped lift stocks.The Hang Seng took back all of Tuesday's losses, leaping 2332 points, to 24,090. China followed, rising 143 points, or 3.2%, to 4703, while in Japan the Nikkei also gained, by 256 points, or 2%, to 12,829. "Today what you see is Asian markets rebounding sharply, with some stocks gaining phenomenally, but others still going down simply because of liquidity," says Peter Taylor, who helps manage $45 billion for Aberdeen asset Management in Singapore. "Investors will see some funny things going on with liquidity now, one level down from what markets are doing," adds Taylor.
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