CORRECTED - CORRECTED-RPT-GLOBAL MARKETS-Asia stocks recover on global rate

* 100 basis points Australia rate cut knocks down yen

* Investors hope for coordinated response to crisis

* Korea's won plunges to 7-½ year low vs US dollar (Corrects closing fall on Nikkei in 10th paragraph)

By Kevin Plumberg

HONG KONG, Oct 7 (Reuters) - Asian stocks outside Japan rose for the first time in four days on Tuesday while the yen and government bond prices fell after a surprisingly large interest rate cut by Australia's central bank raised hopes that other policymakers would follow suit.

Major European stock markets were expected to open as much as 2.3 percent higher, according to financial bookmakers, with investors seen scooping up beaten down shares.

Panic that U.S. and European governments have not yet found a solution to the plague sweeping through the global financial system had pushed Asian stocks to a near 3-year low earlier.

South Korea remained a concern in Asia, with the won <KRW=> sliding to a 7-½ year low despite the country's president playing down talk of a currency crisis similar to one that nearly broke the economy 10 years ago. [ID:nSEO47069]

The fury with which global equity markets have sold off in recent weeks and the worsening condition of the financial system has made the Group of Seven rich nations meeting starting on Friday even more important.

Investors have begun to anticipate some kind of cooperation among countries to solve the crisis, especially after the Reserve Bank of Australia delivered a full percentage point rate cut, the biggest cut in rates since 1992. [ID:nSYD359267]

"Investors believe global central banks could do anything," said Tsutomu Soma, senior manager of foreign assets at Okasan Securities in Tokyo. "The next step could be coordinated interest rate cuts, interventions in the foreign exchange market or more fund injections into money markets. Who knows?"

The MSCI index of Asia-Pacific stocks outside of Japan .MIAPJ0000PUS rose 1.5 percent, rebounding from the lowest since December 2005.

Australia's benchmark S&P/ASX 200 index jumped 1.7 percent, bouncing from a 3-year low, while Singapore's Straits Times index .FTSTI rose 2.3 percent.

Japan's Nikkei share average .N225 finished down 3 percent at a five-year low, though was as much as 5 percent lower earlier in the day as an overnight surge in the yen battered exporters.

FEAR RULES

South Korea's KOSPI .KS11 rebounded from a 21-month low and rose 0.5 percent.