Tokyo ? Asian stock indexes rose sharply today, rebounding from steep losses in the previous two days after a surprise interest rate cut by the U.S. Federal Reserve.

Japan’s benchmark Nikkei 225 index gained as much as 3.9 percent before easing back to a gain of 421.27 points, or 3.4 percent, to end morning trading at 12,994.32 points on the Tokyo Stock Exchange. It had fallen 5.7 percent Tuesday – its biggest percentage drop in nearly 10 years – on fears of a recession in the U.S.

Hong Kong’s blue chip Hang Seng index rose 1,621.87 points, or 7.5 percent, to 23,379.5 within minutes of opening. The benchmark index dropped 2,061.23 points or 8.7 percent Tuesday – the most points it ever lost in a single day.

The Korea Composite Stock Price Index was up 2.6 percent at 1,650.06, and Australia’s benchmark S&P/ASX 200 index was up 5.1 percent by midday today, reversing a 12-day losing streak.