Looks like your timing was right....
from street.com
A breakthrough in Japan's efforts to mop up its troubled banking
system helped spark rallies across Asia and Europe. U.S. stocks
are cued to follow suit."It looks like the Japanese folks are doing something that's going to make a difference," said Bill Allyn, head of block trading at Jefferies. "They're going to approach their problems in a serious manner and this is heartening for the rest of the world."
At about 9 a.m. EDT, the S&P 500 futures were up 19.7, setting the market up for a jump at the open. The dollar was seeing a bit
of a rebound on signs that distressed demand for yen was easing.
The dollar was up a yen to 117.88. The Treasury market is closed
for Columbus Day.
In Tokyo, shortly after the Diet's upper house passed financial revitalization bills, the Liberal Democratic Party and the opposition Heiwa-Kaikaku and Liberal parties said they had hammered out a capital-injection plan to clear up banks' bad debt.
In a press conference, Prime Minister Keizo Obuchi said that the
capital injection plan, to be announced tomorrow, adds up to "quite
a large amount."
If recent reports are anything to go by, "quite a large amount"
should be something around 50 trillion yen. Of that figure, about 30
trillion will be earmarked for a financial stabilization fund used to
shore up banks that are ailing, but not quite on the brink of failure, and help ease the national credit crunch. The remaining 20 trillionwill be used to nationalize failed banks. In addition, there will be a 17 trillion-yen depositor guarantee fund. The market won't have to wait long before the actual amounts are known: The bill should submitted to the lower house tomorrow.
Despite persistent worries that sickly banks will not apply for
funding, as doing so would entail managers' taking responsibility
for their shortcomings, the notion that the government has finally
adopted some sense of urgency sparked plenty of buying. The
Nikkei climbed 675.04, or 5.2%, to 13,555.01. |
