Hong Kong braces for 'storm,' provides funds to banks
Bloomberg.com reports Hong Kong's central bank will provide liquidity to lenders after credit market turmoil triggered a run on the city's third-largest bank and threatened to engulf other firms.
The Hong Kong Monetary Authority will accept more securities in repurchase transactions and provide banks with additional funds through the three-month repurchase window, according to a statement today.
"This is a preparatory move before the storm arrives,'' Hong Kong Financial Secretary John Tsang said before the HKMA announcement. "We have to tape up our windows or fortify them by nailing wooden boards. We are already feeling the winds.''
Nikkei falls 4.1 pct on U.S. bailout rejection; HK shares end up 0.8 pct
The Nikkei average slid 4.1% to hit a three-year closing low on Tuesday after U.S. lawmakers rejected a $700 bln bailout plan for the financial system. Exporters such as Sony and bank shares tumbled although the Nikkei trimmed earlier losses as investors weighed the risk of a rebound on new moves from authorities.
The benchmark Nikkei shed 483.75 points to 11,259.86, the lowest finish since June 2005. It earlier lost nearly 5%. It has lost 13.9% this month and has shed 10% in the April-September period, the first half of the business year. The broader Topix declined 3.6% to 1,087.41, after tumbling more than 5% at one stage.
Hong Kong shares recouped steep early losses to end 0.8% higher on Tuesday as a two-day, 10% slide spurred sellers to cover short postions on expectations U.S. lawmakers would approve a stalled $700 bln bailout package. But the main index still recorded its worst quarterly decline since the September 2001 airliner attacks on the United States amid a flurry of bank failures and bailouts that changed the landscape of Wall Street.
Hang Seng Index ended up 135.53 points at 18,016.21 after dropping more than 6% earlier as U.S. lawmakers held up the rescue plan, knocking hopes for an economic revival. The index fell more than 10% between Friday's close and today's low of 16,799.29 and dropped 18.5% in the September quarter.
The Sensex is now up 287 points at 12,833. (Reuters, Business Standard)
Japan's Nikkei stock average slipped 0.9% on Friday to its lowest close in eight days amid growing worry about the fate of a U.S. financial system bailout plan as talks stalled. Financial services company CSK Holdings tumbled more than 9% after saying it would post an annual loss on the turmoil in global credit markets. Shipping firms slid for a second straight day on a further fall in a key freight index and exporters were hit by a stronger yen. Trade remained light, with investors sidelined as negotiations about the $700 billion bailout plan fell into disarray after a contentious White House meeting. The benchmark Nikkei shed 113.37 points to 11,893.16 for its lowest close since Sept. 18. It lost 0.2% for the week, its second straight week of losses. The broader Topix was down 0.5%at 1,147.89... Hong Kong shares dropped 1.3% on Friday to finish lower for the fourth straight week, as the U.S. bank bailout plan hit a wall, while Ping An was battered by rumours about trouble at Fortis in which it holds a 5% stake. The benchmark Hang Seng Index ended down 252.34 points at 18,682.09. The Index fell 3.3% this week, taking its total losses so far this month to over 12%... The Sensex is now down 426 points at 13,122.