Market Report: Rate Cuts Aim at Asia Support

CHAN:
Lower interest rates and the prospect of more central bank action aimed to support floundering Asian economies and stocks Thursday.

Ahead of likely Bank of England and ECB moves, New Zealand's central bank eased by a record 150 basis points to 5 percent, saying it may trim further.

Looking at the slowdown, Japanese businesses slashed spending 13 percent in the last quarter, likely meaning a downward GDP for the world's No.2 economy.

Tough times have forged ties, and top refiner Nippon Oil and rival Nippon Mining plan to merge next year to create the world's No. 8 oil company, with potential sales of $141 billion.

Meanwhile, the Nikkei newspaper said plasma TV leader Panasonic has raised its offer for Sanyo Electric, after an early appeal to Goldman Sachs and two other major shareholders was rejected.

And Australian mining giant Rio Tinto, with a massive debt gearing, is in talks to sell half of its Chinese aluminium joint venture to its local partner to raise cash.

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