Global stock markets rallied on Tuesday as investors hunted for bargains after days of losses amid hopes of an end to the ongoing financial crisis, analysts said. Shares were also helped by the likelihood that the US Federal Reserve will cut interest rates in a bid to ease pressure on the slowing economy on Wednesday. US stocks ended sharply higher on Tuesday, with the Dow surging almost 11 percent to close back above 9,000 as investors scooped up beaten-down shares and optimism grew that the US Federal Reserve and other central banks will cut interest rates further. The Dow Jones industrial average shot up 889.35 points, or 10.88 percent, to end unofficially at 9,065.12, based on the latest available data. The Standard & Poor's 500 Index surged 91.58 points, or 10.79 percent, to finish unofficially at 940.50. The Nasdaq Composite Index jumped 143.57 points, or 9.53 percent, to close unofficially at 1,649.47. The market action came as the US Federal Reserve was set to begin a two-day meeting expected to deliver a cut in the federal funds rate aimed at stimulating flagging growth and easing the credit crisis. Some analysts also expect the US cut to be followed by reductions by other central banks. Asian equities mainly bounced back, helped by a big rebound in Hong Kong where stocks rocketed 14.4 percent to rebound strongly after plunging sharply the previous day. Frankfurt jumped 9.26 percent near the half-way stage on Tuesday, with carmaker Volkswagen boosted as Porsche prepares to take over the company. London soared 4.25 percent and Paris won 2.99 percent in volatile trading despite continued worries about the ailing global economy. Tokyo finished with a gain of 6.4 percent as the yen fell sharply and investors picked up bargains after the Nikkei index had hit a 26-year low. Seoul rose 5.6 percent and Shanghai firmed 2.8 percent. But some Asian markets missed the rebound, with Sydney ending down 0.4 percent. In the foreign exchange arena, the euro rebounded after briefly hitting $1.2328, its lowest since April 2006. The single currency advanced to $1.2490, compared with $1.2471 late in New York on Monday. The yen meanwhile eased back from multi-year high points against the euro and the dollar. Spot gold was at $737.50 an ounce at 1824 GMT, up 1.1 percent from Monday's close of $729.60.
