Threaders, Was the following infomation figured into the market today. bloomberg.com If not we may get that buy that Big Buck was calling!
Paul V.
>Top Business and Financial Stories
Thu, 6 Nov 1997, 11:33pm EST
Japan's Nikkei Falls to 2 1/2-Year Low on Banking Worries
Japan's main stock index plunged to its lowest level in nearly two and a half years as a report that the
country's biggest regional bank will sell off its stockholdings fueled pessimism about the overall
Japanese banking system. The benchmark Nikkei 225 stock average fell 496.61 points. or 3 percent,
to 16,037.26 -- its lowest since July 11, 1995. The Topix index of all shares on the first section of the
Tokyo Stock Exchange fell 37.87 points, or 3 percent, to 1234.37. Bank of Yokohama Ltd. will sell
cross-shareholdings -- primarily in financial companies -- with a book value of 600 billion yen ($4.9
billion), the Nihon Keizai newspaper reported, without citing sources. The bank said it was selling
some stocks, though it denied it would get rid of its entire stock portfolio.
Japanese Bonds Rise as Investors See Little Help for Economy
Japanese bonds rose as investors expect weak stocks to continue to boost the allure of fixed-income
securities, and see little help from the government to boost the economy. The head of Japan's
Economic Planning Agency, Koji Omi, said the government on Nov. 17 will release a package of
measures to stimulate the economy. ''Investors expect positive statements from politicians, but we
have been betrayed repeatedly,'' said Naomi Hasegawa, a strategist at Tokyo- Mitsubishi Securities
Co. Government policy-makers are still optimistic about the economy, and are unlikely to make big
changes this year, she said. The benchmark No. 182 government bond, maturing in September 2005,
rose 114 yen per 50,000 yen in face value. Its yield fell 3 basis points to 1.580 percent. Bond futures
for December delivery rose 0.33 from yesterday in Tokyo to 130.91, surpassing the previous record
of 130.86 set Wednesday for the most active contract.
South Korean Stocks Tumble, Led by Posco, as Won Weakens
South Korean stocks fell for a second day, led by Pohang Iron & Steel Co., after the Korean won
weakened against the dollar for a third day. The won fell to 978.8 to the dollar, close to a record low,
from yesterday's close of 975. The won's recent declines knocked stocks as it increases the cost of
repaying foreign currency debt. Its fall reflects speculation, denied by the central bank, that Korea is
ready to let its currency float. The benchmark KOSPI index of 775 companies fell 6.62 points, or
1.22 percent, to 547.1.
Rubin Says Key in SE Asia Is Return to 'Sound Policy'
The key to economic growth in Southeast Asian economies lies in a return to sound economic policy
by countries in the region, U.S. Treasury Secretary Robert Rubin said. ''The key here is for these
countries to get back onto a sound policy regime,'' Rubin said today on Cable News Network's
''Moneyline.'' ''The other key is for the international community, when necessary, to provide
resources to get through this period so that these countries can get back on the successful long-term
track they're on,'' he said. Rubin said he does not expect Asia's troubles to spill over and affect the
U.S. economy. Asian markets are still struggling to recover from an Oct. 23 rout in which Hong
Kong's Hang Seng Index plunged more than 10 percent and caused similar drops in surrounding
countries. That same day, Japan's Nikkei 225 index fell 3 percent to 17,151.55 and has continued to
fall after a small rebound on Oct. 24 to 16533.87 at the close of trading yesterday.
U.S. Stocks Fall as PC Maker Profits Seen Squeezed
U.S. stocks fell for the first time this month, led by personal computer makers, amid concern that
lower retail prices will hurt profits this holiday selling season. International Business Machines Corp.
drew attention to falling prices when it introduced an Aptiva PC for $999, its first foray into the
red-hot sub-$1,000 market. Lower prices allow PC makers to sell more machines, though they make
less in profit for each one sold. The Dow Jones Industrial Average fell 9.33, or 0.1 percent, to
7683.24. Dow member Hewlett-Packard Co., another PC vendor that sells a sub- $1,000 machine,
retreated along with IBM, falling 1 5/16 to 63 5/8.
U.S. Bonds Rise: Demand Strong at Treasury Auction
U.S. bonds rose for a second day as traders and investors snapped up the $10 billion of 30-year bonds
the Treasury sold today, in the final part of its quarterly debt sale. Nicholas Walsh, who helps manage
$24 billion in assets at J. & W. Seligman & Co., said expectations for slow inflation and more turmoil
in Asian financial markets bolstered demand for the securities. ''There are a lot of people who think
the long bond (yield) is going to 5 1/2 percent no matter what,'' he said. The next test for the bonds
will come tomorrow, when the government releases its October jobs report, he added. The
benchmark 30-year Treasury bond rose 11/32, or $3.44 per $1,000 bond, to 102 15/32, driving its
yield down 3 basis points to 6.19 percent. The two-year note's yield rose 1 basis point to 5.68
percent.
U.K. Economy: Rate Rise Prompts Talk of More to Come
The Bank of England raised its benchmark interest rate by a quarter-point to 7.25 percent in an
unexpected move that fueled concern more increases are likely in the coming months to curb
inflation. The move took investors by surprise -- all but one of 19 economists surveyed by
Bloomberg News predicted rates would stay on hold this month -- and prompted a decline in stocks
and bonds. The benchmark British government bond's yield rose as much as 9 basis points to 6.67
percent after the noon announcement, while the pound touched a four-month high against the dollar.
The increase, the fifth this year, drives the base lending rate to a five-year high. That rate is the
lowest at which the central bank lends to commercial banks, and they quickly followed suit --
National Westminster Bank Plc, Lloyds TSB Group Plc and Barclays Plc, among others, announced
increases to 7.25 percent in their own base rates.< |
