The Mix on Asian markets

In Tokyo, the benchmark Nikkei stock index rose 1.5 percent to 13,539 points in afternoon trade, after recovering from early losses triggered by worries about problems in the U.S. bond insurance sector.

Those worries eased after reports that bond insurer MBIA Inc. and private equity firm Warburg Pincus had struck an investment deal, and the Nikkei bounced back into positive territory.

In Hong Kong, Asia's second-biggest equities market, the blue chip index sank as much as 2.5 percent during the morning session, dragged down by concerns about China's economy. At midday the benchmark Hang Seng Index was down 0.72 percent at 23,484.0.

Mainland China is struggling to deal with crippling snow storms that have paralyzed transport and shipments of food, fuel and other necessities. The blockages are hampering the government's attempts to bring down spiraling inflation, and that has been reflected in Chinese stock markets as well.

"The main drag is the (China stock) markets, which are on the verge of entering a bear market, and that will drag Hong Kong-listed China plays along with it," said Francis Lun, a general manager at Fulbright Securities.

Analysts, however, remain bullish about the Hong Kong market, which they say has been oversold and offers some attractive opportunities to buy into less exposed stocks such as property and local retailers.

The Dow Jones industrial average, which gained as much as 100 points after the Fed announced its decision to cut its key rates by 50 basis points, ended Wednesday's stock session down 0.3 percent.

Anticipation of the Fed cut had pushed the Dow up more than 470 points this week prior to the downturn, and investors were ready to collect profit after the cut was announced.

source:edition.cnn.com