Frankfurt - European stocks stormed out of the gate Wednesday after hopes of lower interest rates led to a surge in shares across Asia and on Wall Street.

Amid expectations of the US Federal Reserve delivering another hefty cut in borrowing costs Wednesday, Europe's blue-chip Stoxx 50 rose 6.5 per cent to 2,191 in early trading.

This was reflected across national bourses with shares in London gaining more than 5 per cent and Paris jumping 6.5 per cent as the morning session got under way. Stocks in Zurich were up 4.4 per cent.

In addition the European Central Bank is expected to cut the cost of money at its meeting set down for next week.

Seoul - Shares closed more than 3 per cent lower Wednesday on the Seoul stock exchange on rumors that South Korea may apply for bail-out funds by the International Monetary Fund (IMF). The South Korean authorities denied the market rumors.

The benchmark Kospi index plunged 30.19 points, or 3.02 per cent, to close at 968.97, giving up earlier gains.

Declining issues outnumbered advancers 526 to 320.

The main index of the technology-heavy Kosdaq market declined 6.84 points to 265.59.

Beijing - Chinese shares dropped 2.94 per cent on Wednesday despite a massive rally on Wall Street overnight.

Tokyo - Tokyo stocks surged nearly 8 per cent Wednesday, on the back of Wall Street's overnight rally and the dollar's advance against the yen, sending the benchmark Nikkei 225 Stock Average above 8,000.

The Nikkei rose 589.98 points, or 7.74 per cent, to end at 8,211.9.

The broader Topix index of all first-section issues was up 46.29 points, or 5.9 per cent, at 830.32.

The Tokyo market sentiment was buoyed also by speculations that the Bank of Japan is considering an interest-rate cut to help stabilize the market.

Taipei - Taiwan sto

Indian equities opened on a bright note tracking hopeful worldwide signals.

Metal, consumer durables and realty stocks, among the severely hammered in recent weeks, were among the top gainers this morning.

BSE Midcap and Smallcap index gained 2% and 1.86% respectively.

The Bombay Stock Exchange (BSE) on Tuesday celebrated Diwali at evening when the index posted a sharp 547-point gain taking back some eagerness among investors after last Friday’s slaughter.