18 November 2017
AsiaNews.it Twitter AsiaNews.it Facebook
Geographic areas

  • > Africa
  • > Central Asia
  • > Europe
  • > Middle East
  • > Nord America
  • > North Asia
  • > South Asia
  • > South East Asia
  • > South West Asia
  • > Sud America
  • > East Asia

  • » 09/29/2008, 00.00


    Asian markets slump in response to U.S. financial rescue plan

    Despite a new injection of liquidity by the central bank, Tokyo's stock market closes 1.26% lower. Other indices also negative. The emergency plan to stabilize the economy still has many opponents among both Democrats and Republicans. Voting will be held today in Washington.

    Hong Kong (AsiaNews) - Asian markets failed to rally on the overnight agreement in the United States, to present Congress with a financial rescue plan of 700 billion dollars. The plan, discussed for a week by the Bush administration, the presidential candidates, and representatives of the two parties in Congress, heads for a vote today.

    But Asian investors are still doubtful about its effectiveness.

    The Nikkei index in Tokyo rose by 1% in morning trading, only to close with a loss of 1.26%, in spite of an injection of 1.9 trillion yen [about 12.4 billion euros] by the government, the ninth action of its kind in less than two weeks.

    The Hong Kong market dropped 2.1% in morning trading, closing down by 4.29%; the Shanghai market today closed for a week, because of the celebrations for October 1.

    In Kuala Lumpur, the indices were slightly negative; in Seoul, the broad market fell by 1.35%.

    The agreement that will be presented today in Congress will permit the U.S. treasury to spend up to 700 billion dollars to buy bad mortgages held by struggling American banks.

    The government will distribute the money in installments: 250 billion immediately; 100 billion at the request of the White House; the other 350 billion will be subject to congressional approval. The banks that accept the plan will have to grant stock warrants in exchange, permitting American taxpayers - responsible for all of the funding - to reap the benefits if the banks return to profitability. Compensation for bank executives will be reduced, and there will be no more of the "golden parachutes" that until now they have enjoyed upon leaving their jobs.

    The operation is meeting criticism from many Democrats and Republicans, who do not accept such a massive state intervention in the financial world. Nancy Pelosi, a Democrat and the speaker of the house, has said that the plan is not a "bailout of Wall Street", but is aimed at guaranteeing pensions, savings, and jobs.

    e-mail this to a friend Printable version

    See also

    21/01/2008 ASIA
    All Asian markets in the red over U.S. recession fears
    Markets fall, some by more than 6%. Chinese banks forced to cover American mortgage debts. Lack of confidence in the plan unveiled by President Bush last week.

    01/10/2008 ASIA – UNITED STATES
    Small rise but lots of gloom on Asian markets
    Tokyo’s stock exchange gains 1 per cent but confidence levels plunge, sign of a gloomy mood. Everyone is waiting for US Senate to vote on a new financial rescue plan, but US public opinion wants offending banks to foot the bill. Economists tell government not to intervene in markets.

    25/09/2008 ASIA
    Markets drift lower ahead of decision from Washington
    The signs point downward, as central banks continue to inject money into the market. Bush is asking Congress to pass the bailout plan to avoid "economic disaster". But a number of people are criticizing the plan, saying that it risks making the situation worse.

    19/09/2008 ASIA
    Asian markets in net recovery, hopes for American plan
    The US Treasury has decided on an emergency plan to stabilise markets. Indexes across Asia soar. But fears remain. The price of gold increases.

    30/09/2008 ASIA - U.S.
    Depth of the abyss of economic, social, political chaos
    The worldwide financial situation was disastrous even before the rejection of the U.S. emergency plan. The Paulson plan for 700 billion dollars is enormous (432,10% of the total U.S. deficit), but it pales in comparison to the mountain of financial paper in circulation, well above 20% of global economic production.

    Editor's choices

    Mass for a deceased underground priest. Card. Zen asks for God ‘s grace to save the Church in China and the Holy See from the 'precipice'

    Li Yuan

    Fr. Wei Heping, 41, died in mysterious circumstances, his body dumped in a river in Taiyuan (Shanxi). For the police claim he committed suicide. Family members are not allowed to even see the autopsy report. For Card. Zen the Holy See (which "is not necessarily the Pope") seeks a compromise at all costs with the Chinese government, risking "to sell out the faithful Church". Justice and Peace publish a booklet about Fr. Wei, not to forget.

    Pope: No more war, its only fruit is death, 'our self-destruction'

    Marking the Feast of All Souls, Francis celebrated Mass at the American Cemetery in Nettuno. "When so many times in history men think of a war, they are convinced of bringing a new world, they are convinced of making a 'spring'. It ends in a winter, ugly, cruel, with the reign of terror and death."


    AsiaNews monthly magazine (in Italian) is free.


    News feed

    Canale RSScanale RSS 

    Add to Google


    IRAN 2016 Banner

    2003 © All rights reserved - AsiaNews C.F. e P.Iva: 00889190153 - GLACOM®