US RATE FUTURES-Fed cuts of 125 bps seen possible this week

TOKYO, March 17 (Reuters) - Futures on the federal funds rate soared in Asia on Monday as investors feared the deepening credit crisis that ensnared investment bank Bear Stearns could push the Federal Reserve to slash rates up to 125 basis points on Tuesday.

The March futures contract FEDWATCH covering the Fed's policy meeting on Tuesday showed a roughly 25 percent chance of 125 basis points of cuts -- either at the meeting or via a combination of cuts if the Fed were to act before the gathering.

Even a cut of 100 basis points would be one of the most aggressive moves in the modern history of the Fed. Earlier the Fed cut its discount rate and launched a discount window facility for major U.S. investment banks, shifting to tools not used since the Great Depression. (Reporting by Eric Burroughs)