Hong Kong led a rally in Asia-Pacific stocks on Thursday, recording its second-biggest daily rise on record as rate cuts by the US, China and Taiwan spurred investor demand for stocks as central banks moved to stave off a global recession.

South Korean stocks also surged, posting their biggest daily gain on record as investors applauded a deal that sees the US lend $30bn through dollar swap lines, which the US also set up with Singapore, Brazil and Mexico. South Korean banks and companies have been suffering from a foreign currency liquidity crunch.