The US Federal Reserve’s move to extend emergency currency swap lines to four emerging economies on Thursday eased the worries of Asian companies and banks and restored confidence in Latin American markets.

The Fed agreed on Thursday to lend $30bn (€23bn, £19bn) each to South Korea and Singapore as well as Brazil and Mexico. The swap line with South Korea is seen by analysts as a way of providing direct support to one of the Asian countries that has suffered most in the recent financial market turmoil.