SINGAPORE -- The South Korean won jumped more than 14 percent on Thursday, leading a currency rally in Asia as investors snapped up battered stocks following central bank action to head off a global economic recession.

The won surged as high as 1,242.9 per dollar, scoring its biggest intraday percentage rise in more than a decade, as optimism rose that a dollar crunch would ease after the country a secured $30-billion currency swap line with the Federal Reserve.

"In our view, the swap program will address lingering concerns of investors about the adequacy of Korea's foreign reserves and hence be supportive of the won," analysts at
Goldman Sachs said in a note.

The bank maintained its outlook on the won, expecting it to reach 1,250, 1,150, and 1,120 in 3, 6, and 12 months, respectively.

The Fed on Wednesday slashed its key interest rate by 50 basis points to 1.0 percent, leading a rate-cutting campaign joined by central banks in China, Taiwan and Hong Kong.

The cost of borrowing dollars in Asia fell on Thursday, helped by the Fed's rate cut and its currency swap lines with such countries as South Korea and Singapore.

A dollar crunch across Asia, particularly in South Korea, had contributed to the recent currency weakness, analysts say.

The Indonesian rupiah jumped nearly 3.0 percent to 10,400 per dollar, while the Philippine peso rose as far as 48.70 per dollar, up 1.0 percent from Wednesday's close.

"Most emerging market currencies are rallying against the dollar. I think it's reacting to Fed's rate cut though it was already expected," said a trader in Manila. "And comments after that open the possibility of another rate cut."

The Philippine central bank said on Thursday that the falling US interest rates increased flexibility in setting its monetary policy.

Asia-Pacific stocks outside Japan climbed for a third day, jumped almost 10 percent by 0555 GMT, the third straight day of gains as investors picked up beaten-down shares.

The US dollar stayed broadly weak a day after it suffered its biggest one-day loss against a basket of currencies in 23 years following the Fed's hefty rate cut.

Meanwhile, the Singapore dollar rose nearly 1.7 percent to a two-week high at 1.4625 per US dollar as local stocks jumped nearly 7.0 percent.

"The US dollar/Singapore dollar follows the general US dollar correction," said a trader. "But we reckon these levels may see some support from those shorts above 1.4950."

Traders say they see little market implication from a swap facility signed between Singapore's central bank and the Fed.

Elsewhere, the Malaysian ringgit gained 0.4 percent to 3.546 per dollar while the Thai baht rose a fifth of a percent to 34.72 per dollar.

"The dollar/baht comes under pressure as regional area heading south," said a Bangkok-based trader, who added that the authorities may prevent any panic dollar selling by exporters.