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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (6391)	9/14/1998 2:38:00 AM
From: MikeM54321	Respond to of 9980

Thread, I remember reading the economic data out of Japan AFTER their markets closed for their weekend. So I was fairly certain that when trading resumed on Monday, the Nikkei would be hit very hard two days in a row. But it turns out I was wrong. Now I'm wondering if the compromise on the banking bill (clip below) was due to the realization by Japan's parliament is finally understanding the seriousness of the situation. As Prime Minister Obuchi recently stated to President Clinton, there was only so much he could do. A lot depended upon Japan's parliament. The details are below. All clips are in chronological order. MikeM(From Florida) _____________________________________________ Tokyo Nikkei Slides Five Percent on Global Fears Tokyo, Sept 11 - Tokyo's Nikkei average plunged more than five percent and through the important 14,000-point level on Friday after a fall on Wall Street hit sentiment and renewed fears of a global equity meltdown. The Nikkei index of 225 leading shares ended down 749.05 points, 5.11 percent, at 13,916.98, its biggest fall this year. Gross domestic product (GDP) data due to be announced on Friday afternoon was expected to show the economy shrank for a third straight quarter in the April-June period. The gloomy outlook, analysts say, means share prices will remain in jeopardy. ******************* Japan's Economy Shrinks for Third Quarter in a Row Tokyo, Sept 11- Japan's economy contracted in the April-June period for the third consecutive quarter, the goverment said on Friday, the longest decline since it began collecting the data in 1955. The widely watched gross domestic product (GDP) fell a real 0.8 percent in the period from the previous quarter. On an annualised basis, it was down 3.3 percent. The figures were even worse than the gloomy expectations. Economic Planning Agency (EPA) Minister Taichi Sakaiya said the government would likely revise down its GDP forecast of 1.9 percent growth in fiscal 1998/99 after issuing the April-June data. He said the figure would be nearly impossible to reach and said that Japan may need to take ''drastic'' steps if the economy worsens further. Prime Minister Obuchi said, "We will try our best to see economic recovery as soon as possible." Economic Planning Agency Minister Sakaiya said, "It (Japanese economy) is standing next to a deflationary spiral and needs caution. We may need to take drastic measures in case of an emergency (in the Japanese economy).'' ***************** Japanese Stocks Surge on News of LDP Banking Bill Compromise** Tokyo, Sept. 14 -- Japanese stocks rebounded, led by a surge in futures on optimism about a breakthrough in the parliamentary deadlock over bills to restructure the financial system, Jiji press reported. Bank of Tokyo-Mitsubishi and Sony Corp. led the rise. The ruling Liberal Democratic Party will offer a compromise bill which scraps plans to re-capitalize banks with 13 trillion yen ($99 billion) of public funds and will instead dispose of banks that are de-facto bankrupt, Jiji reported. ''The market's up on this,'' said Kenji Karikomi, deputy general manager at Daiwa Securities Co.'s equity division. ''With this new plan (the banking bills) might move along.'' The benchmark Nikkei 225 stock index added 256.85 points, or 1.85 percent, to 14,173.83.