Asian stock markets rally

A surge in prices on the Hong Kong stock exchange has led a recovery in markets across Asia.

Share prices in Hong Kong finished the day more than seven per cent up, recovering most of the ground lost in a crash on Monday.

Elsewhere, Indonesia's main index climbed by more than nine per cent, Singapore saw a rise of eight per cent following several days of heavy losses, and Malaysia registered an increase of five-and-a-half per cent.

However, correspondents in Hong Kong say market confidence remains low.

A liquidator has been appointed for the failed Peregrine investment bank, whose collapse triggered the Hong Kong falls.

In Jakarta, a United States presidential envoy said he'd held encouraging talks with President Suharto on Indonesia's economic difficulties.

From the newsroom of the BBC World Service