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.''
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 average fell 1.3% on Monday, down for a third day as investor caution about the implementing of a U.S. bailout plan for the financial sector outweighed initial relief that a deal was being done. Major banks shed much of their gains or sank into negative territory, while blue-chip exporters such as Toyota Motor (TM) fell sharply on worries about the global economic outlook. Shippers extended last week's losses after a key freight index tumbled, and energy shares also fell on a decline in oil prices. Hong Kong shares fell 4.3% on Monday, sliding to near two-year lows as investors offloaded property stocks on a mortgage rate hike and job cuts at HSBC (HBC). The Hang Seng Index ended down 801.41 points at 17,880.68, taking year-to-date losses to almost 36%. India's Sensex was down approx 600 points to 12,498 at 15:43 IST.
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.
CNN Money reports hundreds of nervous customers have swarmed Bank of East Asia offices in Hong Kong and Singapore, the second day of Asia's first major bank run since the global financial crisis erupted last year. Hong Kong's de facto central bank, meanwhile, responded by injecting $500 million into the market as a way of shoring up the territory's banking system. The Bank of East Asia received another boost when billionaire tycoon Li Ka-shing started buying the company's stock after it plunged Wednesday -- a huge vote of confidence from the territory's richest man. Shares rebounded Thursday. The moves came after thousands of customers descended on BEA offices across Hong Kong on Wednesday to demand their deposits amid unconfirmed rumors questioning the mid-sized lender's stability.