TOKYO (AP) -- Asian stocks soared Wednesday in the wake of Wall Street's overnight surge spurred by the U.S. Federal Reserve's larger-than-expected interest rate cut.

Japan's benchmark Nikkei 225 stock index jumped 500.22 points, or 3.17 percent, to 16,302.02 points in afternoon trading. In Hong Kong, the blue chip Hang Seng Index was up 928.45 points, or 3.78 percent, to 25,505.3.

Stock markets in South Korea, India, Australia, Singapore, Taiwan and the Philippines also advanced. Chinese shares, however, fell.

Investors were cheered by a rally in U.S. stocks Tuesday after the Fed cut its benchmark interest rate by a half percentage point to 4.75 percent. The Dow Jones industrial average surged 335.97 points, or 2.51 percent, to 13,739.39 -- its biggest one-day point jump in nearly five years.

The move came after weeks of global market turmoil amid concerns over tightening credit conditions sparked by rising default rates among U.S. mortgage holders with poor credit. The U.S. rate cut signals that the Fed wants to prevent a slump in the U.S. housing market and turbulence in financial markets from starting a recession.

Asian investors have been worried that the credit crisis might drag on growth in the U.S. economy, a

SINGAPORE (AP) -- Oil prices rose Wednesday above the previous session's record close, lifted by expectations the interest rate cut by the U.S. Federal Reserve will accelerate growth and increase demand for already tight crude and gasoline supplies.

Light, sweet crude for October delivery added 82 cents to $82.33 a barrel in Asian electronic trading on the New York Mercantile Exchange by midmorning in Singapore.

The Fed cut its benchmark federal funds rate overnight by half a percentage point to 4.75 percent in an effort to prevent the recent credit crunch from hurting the overall economy, a move that led to a surge in crude oil prices in the moments immediately after the announcement.

"The oil market has taken confidence from the cut in the federal funds rate," said David Moore, commodity strategist with the Commonwealth Bank of Australia in Sydney.

"There had been concerns that U.S. economic growth may slow and the U.S. is the largest oil consumer, so it would potentially impact on oil demand," Moore said. "The Fed's rate cut has at least reduced the risks of a severe slowing in the U.S. economy," he said.

Nymex crude settled Tuesday at a fresh record close of $81.51 a barrel, up 94 cents. It later hit an all-time high of $82.38 a barrel in after-hours trading. Analysts note, though, that oil prices are still well

WASHINGTON (AP) -- In a bold strike, the Federal Reserve slashed a key interest rate by a half point on Tuesday -- the first cut in over four years -- and left the door open to further relief to prevent a painful housing slump and jarring credit crunch from driving the country into recession.

Wall Street responded enthusiastically, propelling stocks up 335.97 points -- its biggest one-day point jump in nearly five years. Politicians, shaken by record-high home foreclosures, also welcomed the move.

In a crucial and anxiously awaited decision, Federal Reserve Chairman Ben Bernanke and his central bank colleagues lowered an important interest rate to 4.75 percent. Economic and political pressure has been building on the Fed to act.

As a result, Wells Fargo, Bank of America and other commercial banks dropped their prime lending rate charged to millions of borrowers by a corresponding amount to 7.75 percent.

Whether Bernanke can handle the crisis successfully is the biggest challenge he has faced in his 19 months at the Fed helm.

"Today's action is intended to help forestall some adverse effects on the economy that might otherwise arise from disruptions in financial markets and to promote moderate growth over time," the Fed said in a statement released after its closed-door meeting.

The Fed's action means borrowers who can obtain credit should see rates drop on a variety of loans. It will become less expensive for people to finance certain credit card debt and for homeowners to take out