Hong Kong - Hong Kong shares rebounded by 2.65 per cent Thursday morning as officials tracked the US Federal Reserve by cutting interest rates by a further 0.5 per cent.

The interest rate cut, which brings base rates down to 2 per cent, follows a 1 percentage point cut by the Hong Kong Monetary Authority Wednesday.

Announcing the cut, the authority's chief executive Joseph Yam said the impact of the reduction might take some time to filter through to the markets.

"The coordinated rate cuts by global central banks is unprecedented and that reflected the seriousness of the financial crisis of this century," Yam said.

Hong Kong shares climbed 409.69 points or 2.65 per cent to 15,841.42 Thursday morning as the interest rate cut was announced. Turnover was 33 billion Hong Kong dollars (4.24 billion US dollars).

On Wednesday, Hong Kong shares slumped by more than 8 per cent despite the interest rate cut. Share prices in the city of 6.9 million have fallen by 20 per cent since September 22. (dpa)