Asia Markets
Tokyo gains, BOJ rate cut welcomed
By Mariko Ando, CBS.MarketWatch.com
Last Update: 9:02 PM ET Sep 18, 2001
TOKYO (CBS.MW) -- Tokyo stocks opened sharply higher Wednesday, as investors were relieved to see the Bank of Japan join other major central banks in easing monetary policy to help avoid global recession.
In early morning trading, the Nikkei Average was up 1.42 percent, or 137 points, at 9,816.88, adding to Tuesday's 1.85 percent jump. The broader TOPIX, which rose 1.67 percent the previous day, rose another 1.08 percent Wednesday morning to 1,024.03.
The Bank of Japan announced late Tuesday it would cut its discount rate to 0.10 percent from 0.25 percent and boost its liquidity injections into the banking system. See full story.
The BOJ's move came after a series of rate cuts by the U.S. Federal Reserve and the European Central Bank to provide stability to the global economy in the aftermath of last week's terrorist attacks in the United States.
However, the continuing slide in U.S. stocks put a lid on Tokyo's gains. In New York, the Dow eased 0.19 percent to 8,903.40. The Nasdaq lost 1.55 percent. Both indexes tumbled nearly 7 percent Monday, after being closed for four days following terrorist attacks a week ago in New York and Washington D.C.
In South Korea Wednesday morning, the benchmark Kospi opened down 0.24 percent at 483.75, after closing up 3.5 percent the previous day. The Bank of Korea earlier in the day cut interest rates half a point to a record-low 4 percent.
Australia's All Ordinaries Index added 0.19 percent to 2,954.10 and New Zealand's NZ Top 40 advanced 0.57 percent to 1,840.74 by midmorning.
The dollar was trading recently at 117.32 yen in the early morning in Tokyo, little moved from 117.30 yen in New York late Tuesday. |
