Thu, Oct 02, 2008 page11

• Most markets across Asia recover on bailout hopes

  TRY, TRY AGAIN Although the House of Representatives shot down the bailout package, markets have remained hopeful that a revised version of the bill would pass

  • AP
  • • 
    • 
    • 

  Most Asian markets bounced back yesterday on hopes that a US$700 billion bailout for the US financial system will soon win legislative approval, although doubts persisted about the outlook for the global economy.

  The TAIEX index rose 44.73 points, or 0.78 percent, to 5,764.01 following a Wall Street rebound. On Tuesday, the benchmark index dropped 3.55 percent on disappointment that the US House of Representatives had rejected the bank rescue package.

  The market opened high, but “investors were reluctant to push the prices higher,” said Young Wang of Yuanta Securities Investment Consulting (元大投顧). “Investors were still waiting for the final result of the US bailout package,” he said.

  Anthony Huang of Taiwan Securities (台証證券) said investors remain uncertain about the package. And even if the bailout passes doubts remain about the future of Asian economies.

  “Taiwan can’t be doing well if consumers in US and Europe are not spending enough.” Huang said.

  Looking ahead, analysts said they expected the domestic market would not suffer further steep falls after the Taiwanese government adopted measures to stabilize prices, including a ban on short-selling for two weeks from yesterday.

  Japan’s Nikkei 225 index gained 108.40 points, or 0.96 percent, to close at 11,368.26. Markets in India and Australia also gained. But South Korea’s Kospi lost its earlier gains and fell 0.6 percent to 1,439.67.

  Regional reaction was muted because several markets were closed for holidays, including those in Hong Kong, China, Singapore, Indonesia, Malaysia and the Philippines.

  In early European trading, markets were mixed. Britain’s FTSE 100 was up 1.4 percent, but Germany’s DAX was down 0.1 percent.

  Investors took heart from the rebound on Wall Street on Tuesday amid expectations that lawmakers will salvage the rescue plan aimed at cleaning up the bad debt mess at banks and other financial institutions. The US Senate will vote today on a revised bailout plan, with a House revote expected later in the week. In New York, the Dow Jones industrial average surged nearly 500 points after plunging 777 points on Monday.

  But analysts warned that new worries were already starting to emerge about possible compromises that might be included in a reworked emergency package, raising questions about how effective it may be when implemented.

  “The market is already expecting the plan to pass. The question now is what’s next,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Securities Co in Tokyo.

  Investors are still concerned about declining US housing prices and the overall US economy — a vital export market for Asia — especially as they look ahead to the Christmas shopping season.

  Major Japanese companies, including electronics and autos, are counting on solid exports to the US to keep up profits, Fujito said.

  ADDITIONAL REPORTING BY AFP
• Most Popular

  • 1

    HSR to encircle Taiwan

  • 2

    MOFA welcomes Rubio’s Taiwan remarks

  • 3

    China seeks to divide Okinawa: report

  • 4

    Two local airlines could be fined for hard landings

  • 5

    SPEAK UP: Let’s check your horoscope for 2025 (2/2) 2025年12星座運勢揭曉（下）