Asian stocks fell sharply across the board at the opening on Thursday, but bargain-hunting activities helped some of the key markets recover most of their losses at the end.
Analysts said that the emergency move by the U.S. government to rescue its largest insurance company, American International Group, made investors more worried about the current situation of the financial market. After a sharp fall of 449 points in the U.S. stock market at the closing on Wednesday, Asian stock markets plunged immediately at the opening on Thursday.
An analyst said that the news of another large injection of funds by the U.S. Federal Reserve encouraged investors to buy stocks at low prices.
The U.S. Federal Reserve announced today an injection of $180 billion in revolving loan cash to deal with the global financial crisis and provide the needed dollar funds for other countries' central banks. This is part of the joint actions taken by various central banks.
Since the collapse of U.S. investment bank Lehman Brothers, central banks around the world have injected hundreds of billions of dollars into the money market.