JAPAN: Tokyo markets lead Asia in a modest rally after central world banks help ease fears of global credit crisis

Record ID: 463644

  • Title: JAPAN: Tokyo markets lead Asia in a modest rally after central world banks help ease fears of global credit crisis
  • Date: 13th August 2007
  • Summary: (BN03) TOKYO, JAPAN (AUGUST 13, 2007) (REUTERS) TOKYO STOCK EXCHANGE INTERIOR VARIOUS OF EXCHANGE STAFF MONITORING TRADING TOURIST LOOKS AT THE STOCK BOARD VARIOUS OF TSE STOCK BOARD CLOSE UP OF NIKKEI AVERAGE AT 16887.80, UP 123.71 IN MORNING TRADE MORE OF INTERIOR OF STOCK EXCHANGE WIDE OF FOREIGN EXCHANGE TRADING ROOM VARIOUS OF FOREIGN EXCHANGE TRADERS ELECTRONIC SIGN SHOWING THE DOLLAR BEING TRADED AT 118.26 YEN IN MORNING TRADE
  • Embargoed: 28th August 2007 13:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Economic News
  • Reuters ID: LVACIN9EM6QSSGTCF66ZTWBBYKWA
  • Story Text: Tokyo stocks lead Asian markets in a modest rally on Monday (August 13) after central banks around the world helped ease fears of a global credit crisis by pumping money into banking systems and the yen steadied after last week's volatility.
    Markets have been swaying for weeks by news of problems in banks and funds exposed to risky investment in U.S. mortgage and asset-backed markets, triggering fears that the cheap credit that has fuelled global growth might dry up.
    Central banks in Europe, Asia and North America injected huge sums into the money market late last week in an effort to prevent money markets seizing up as the number of financial institutions revealing exposure to crumbling credit markets swelled.
    The Fed also said it would provide cash as needed to ensure markets functioned smoothly in a rare comment last seen during the Sept 11, 2001 attacks.
    By 0150 GMT, Tokyo's Nikkei average had climbed 0.4 percent while MSCI's measure of Asia Pacific stocks excluding Japan put on 1.2 percent.
    The MSCI index is still down about 9 percent from the record high set on July 24, but is up 16 percent this year.
    The yen edged up after losing ground last Friday (August 10) as global stock markets steadied following their slide.
    The Japanese currency had been rising recently as investors unwound carry trades funded by the low-yielding unit.
    In a carry trades, investors borrow low-interest rate currencies such as the yen, to buy riskier but higher yielding assets.
    The dollar slipped slightly to 118.25 yen from near 118.40 yen late in U.S. trade but remained well off a low of 117.19 yen set last week, while the euro was little changed at 162.08 yen above Friday's 4-month low of 159.98 yen.
  • Copyright Holder: REUTERS
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