Market Report - Japan Eyes Bank Plan

WONG:
In market news, it seems Japan wasn't too happy with the US bank bailout compromise. Let's take a look at that story.


STORY:
Japan reacted with disappointment to the U.S. bank bailout plan Thursday, finding only mild relief from the compromise deal on the $789 billion plan overnight.

After a market holiday Wednesday, Japanese banks eased as investors took little heart from details of the U.S. bailout.

Analyst Naomi Fink said the Washington plan wont lead to jobs or more spending.

[Naomi Fink, Bank of Tokyo Mitsubishi-UFJ Strategist]:
"If we look at the bailout plan in the U.S., there is not much confidence that this bailout plan, even if successful is really going to repair consumption, is really going to bring back jobs in to the economy right away. This is a protracted problem and step number one is to stabilize markets. Once that is done, there is still some de-leveraging to come. There is a decline in consumption and a build up in savings that is simply not going to mean a great consumption of exports."

Hong Kong banks were lower again, with a House of Representatives vote likely Thursday and the Senate soon after.

Most tech shares, including Japanese chipmaker Elpida Memory that is reportedly tieing up with three Taiwan chipmakers, dipped, but Japan's Pioneer, which is halting flat TV production, edged up.

As economic signs worsened, gold traded near a 6.5 month high on safe-haven demand and weak China trade data.

Category:

News & Politics

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