Bank of Japan Cuts Key Rate, Nikkei Plunges · The Bank of Japan lowered its key interest rate to 0.3% Friday, down from an already record low 0.5%, to help stave off a prolonged recession.  The Nikkei 225 index plunged 5% after three of the eight board members dissented in favor of a larger cut. (Bloomberg)

Asian, European Stocks Rally On Rate Cuts · Global markets rallied Thursday as Asian and European central banks echoed the Federal Reserve's Wednesday rate decision with cuts of their own.  In Asia, Japan's Nikkei 225 index rose 10% while Seoul's Kospi index soared 12%. (NYT)

Asian Markets Rebound, Hang Seng Climbs 14.4% · Asian stocks staged a surprise rally Tuesday led by the Hang Seng which climbed 14.4%, its biggest daily gain since February 1998.  Japan's Nikkei 225 index also gained 6.4% after the Japanese government instituted a ban on naked short selling of stocks.(FT)

Dixon/Hadas: How to Control a Currency Panic [OPINION] · Edward Hadas and Hugo Dixon of Breakingviews.com argue that China, Japan, the United States and Britain should immediately rally world governments to defend target exchange rates or risk a complete breakdown in the global trade system. (NYT)

Overseas Markets Roiled Amid Currency Concerns · Asian markets fell sharply Monday as the Group of Seven cautioned against the yen's rise and the Japanese government moved to recapitalize domestic banks and curb short-selling. Japan's Nikkei 225 Index fell 6.4% to reach its lowest closing level since October 1982 while the Hang Seng lost 12.7%. (NYT)

G7 Warns Against Yen’s “Excessive Volatility” · The Group of Seven issued an emergency statement Monday warning the "excessive volatility" in the Japanese yen threatens the global financial system.  The currency is currently trading at its strongest level in 13 years, pushed higher as investors unwind high-risk investments financed with borrowed yen. (WSJ)

Japanese Banks Seek Capital, Mitsubishi To Raise $10.6B · Japan's Mitsubishi UFJ Financial Group, which recently invested $9 billion in Morgan Stanley, said Monday it needs to raise up to $10.6 billion through a combined common and preferred stock offering as stock market losses threaten its capital adequacy. (Reuters)

Markets Roiled In Europe And Asia, Nikkei Falls 6.8% · Asian and European stocks declined sharply Wednesday as global financial institutions continued deleveraging and European currencies fell to their lowest points against the dollar in years. The Nikkei 225 stock average plunged 6.8% after three days of gains as the yen surged. (NYT)

Chrysler Explores Renault-Nissan Merger · Cerberus Capital, majority owner of Chrysler, is reportedly in talks to sell a minority stake of the Detroit automaker to Japan's Nissan as continued credit-market worries complicate its merger discussions with General Motors. (WSJ)

Iceland To Announce $6B IMF Rescue Package · Iceland will reportedly receive a $6 billion rescue package, sponsored by the International Monetary Fund, to help stabilize its banking system which collapsed earlier this month.  Central banks from Japan and the Nordic region are expected to contribute funding. (FT)

Hong Kong And Japanese Authorities Underwrite Banks · The Hong Kong Monetary Authority and Bank of Japan have joined the list of countries guaranteeing bank deposits. (NYT) Hong Kong will guarantee all $774B in deposits through 2010. The Bank of Japan will offer lenders as many dollars as they want, at low fixed rates, against "pooled collateral." (Bloomberg)

Morgan Stanley, Mitsubishi Renegotiate Investment · Japan's Mitsubishi UFJ Financial Group is reportedly trying to renegotiate a planned $9 billion investment in Morgan Stanley, which lost nearly half its market value during last week’s stock market plunge. The bank wants assurance the U.S. Treasury will not dilute its stake through additional capital injections. (NYT)

Bush Meets G7 Ministers, No New Strategy · President Bush met with financial officials from the wealthy Group of Seven countries and pledged a global response to the credit crisis. (Washington Post) But he offered no new strategies in the foreshortened meeting, lasting only a half-hour.

Paulson Defends G-7 Communique · The Group of Seven issued a communique on the first day of their meetings in Washington, DC.  It promised to take "decisive action and use all available tools" without specifying what they are beyond supporting the Financial Stability Forum's recommendations. (WSJ)

Asia Hammered Friday, Nikkei Falls 10% · Japan's Nikkei 225-stock index posted its worst week in its 50-year history and its biggest one-day fall since 1987, plunging more than 11.4% to 8,115 before recovering slightly to 8,276 by closing, down 9.6%.  (Bloomberg) Hong Kong's Seng Index fell 6.9%, and the Hang Seng tumbled 8.3%.  Korea's Kospi was down 8.1%, Thailand's SET fell 8.1%, Singapore's Straits Times Index dropped 7.2%, and Australia's S&P/ASX 200 lost 7.1%.  (WSJ)