HONG KONG, Sep 19 (Reuters) Asian stocks listed on Wall Street <.BKAS> jumped 2.7 percent to a seven-week closing high after the U.S. Federal Reserve slashed the benchmark fed funds rate by 50 basis points to 4.75 percent.
The hefty move was a bold bid to shield the world's biggest economy from a housing slump and financial turbulence, helping soothe fears of a sharper slowdown in Asia's top export market.
Banks shares, which have been battered by worries about a global credit shortage stemming from the U.S. subprime mortgage crisis, rallied. Exporters were also lifted by the rate move.
The Fed action also helped U.S. stocks jump the most in four years, driving the blue chip Dow Jones Industrial Average <.DJI> up 2.5 percent.
MSCI's measure of Asia Pacific stocks excluding Japan <.MIAPJ0000PUS> fell 0.6 percent on Tuesday ahead of the U.S.
-- HEADLINES: >Fed slashes U.S. interest rates to buffer economy [nN18433941] >Wall St soars as Fed makes bold rate decision [nN18470385] >Lehman net falls less than fcast, says worst over [nN18426958] >Dollar falls to record low vs euro after Fed rate [nN18455134] >N.Rock says tide turns after deposit pledge [nL18688507] >PCCW's Li says received no credible offer [nHKG172922] >China Construction Bank raises .7 bln in IPO [nL18823767] >Murdoch makes case for free WSJ online [nN18466849] >Copper extends gains after U.S. Fed rate cut [nL18130673] >Oil hits new high over after Fed rate cut [nSP161854] >ADR Report-Shares rally on Fed cut, banks recover [nN18424873] -- KEY INDEXES pct change Bank of New York Asia ADR index <.BKAS> +2.68 Dow Jones Industrial Average <.DJI> +2.51 Nasdaq Composite Index <.IXIC> +2.71 MSCI Asia Pacific ex-Japan <.MIAPJ0000PUS> -0.62 Nikkei futures in Chicago <2NKc1> 16,300 Nikkei futures in Osaka