Hong Kong - Hong Kong stocks rose 6.5 per cent in the first 30 minutes of trading Thursday on the back of the US Federal Reserve's interest rate cuts. 

The blue-chip Hang Seng index gained 824 points rising to 13,526 points as investors took comfort in the Feds move Wednesday to ease the credit crisis by reducing the interest rate by 0.5 per to 1 per cent. 

Earlier Thursday, the Hong Kong Monetary Authority announced it was following the move, cutting its base interest rates by 50 points to 1.5 percent. Hong Kong's currency is pegged to the US dollar. 

The authority's chief executive, Joseph Yam, said he hoped the move would result in a reduction in local bank lending rates. 

This week has been one of the most volatile in the Hang Seng's history with stocks sinking by 12.7 per cent on Monday only to bounce back by 14.35 per cent Tuesday when it index recorded its biggest rally in more than 10 years. 

The Hang Seng Index has lost almost two third of its value since October last year when it reached a peak of almost 32,000 points. (dpa)