Asian markets continue recovery after late rally on Wall Street

Tokyo: Share prices in Asia have risen for the second day running as confidence grew following rallies in the US markets.

Japan's Nikkei index was more than 2 per cent up in early trading on Thursday.

However European shares continued to slide as investors showed concern that the European Central Bank was not going to follow the US Federal Reserve and cut interest rates.

The UK's FTSE 100 index was 2.2% down while the Dax exchange in Germany lost 4.9 per cent. .

In the US markets eventually reacted favourably to the 0.75 per cent cut in rates as a late rally on New York's Down Jones saw it making gains of 2.5 per cent. The technology heavy Nasdaq climbed one per cent.

Panic had swept through markets this week fuelled by fears that a global recession is around the corner.