The Curator » Japan

Bank of Japan Cuts Key Rate, Nikkei Plunges

Michelle — Fri, 31 Oct 2008 11:21:06 +0000

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)

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Japan Stuck, Quantitative Easing In The U.S. (Financial Ninja)

Asian, European Stocks Rally On Rate Cuts

Michelle — Thu, 30 Oct 2008 10:43:57 +0000

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%

Michelle — Tue, 28 Oct 2008 10:29:05 +0000

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]

Michelle — Tue, 28 Oct 2008 03:41:04 +0000

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

Michelle — Mon, 27 Oct 2008 10:59:34 +0000

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”

Michelle — Mon, 27 Oct 2008 10:46:50 +0000

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

Michelle — Mon, 27 Oct 2008 10:35:13 +0000

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)

Rivals Mizuho Financial and Sumitomo Mitsui Financial are also reportedly looking to raise $5.4 billion as their extensive holdings in domestic equities plummet.

The measures raise concern that a recent spending spree by Japanese banks has left them poorly equipped to absorb stock losses and souring loans.

Sources: (Reuters, WSJ)

Markets Roiled In Europe And Asia, Nikkei Falls 6.8%

Michelle — Wed, 22 Oct 2008 10:36:23 +0000

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

Michelle — Tue, 21 Oct 2008 01:06:58 +0000

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

Michelle — Mon, 20 Oct 2008 13:52:03 +0000

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

Dale — Tue, 14 Oct 2008 18:01:56 +0000

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

Michelle — Sun, 12 Oct 2008 23:40:52 +0000

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

Dale — Sat, 11 Oct 2008 14:20:36 +0000

Bush, with G7 finance ministers including Paulson, and Rice. Photo: AP

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

Dale — Fri, 10 Oct 2008 23:05:13 +0000

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) In a press conference, Treasury Secretary Henry Paulson emphasized the importance of restoring interbank liquidity, deposit insurance, commercial paper, and illiquid mortgage assets.