Monday, 8th September 2008
In Business In Japan,
Nikkei rises on US mortgage bailout
Japanese stocks and shares have soared following news that the US Treasury is to bailout mortgage lenders Fannie Mae and Freddie Mac.
The International Herald Tribune reports that the benchmark Nikkei 225 index rocketed 412.23 (3.38 per cent) reaching 12,624.46.
Among the big winners was Mitsubishi UFJ Financial Group which increased by 13.3 per cent to 850 yen.
Japan's three biggest banks have all posted huge gains.
Nomura Holdings strategist Kiichi Fujita commented: "Japanese bank shares just recovered what they had lost earlier on the worries about Wall Street It reflects a psychological impact that came from a feeling of relief."
The development was part of a broad rally across Asia.
Fannie Mae and Freddie Mac control more than half of all mortgages in the US, according to the Pittsburgh Business Times.
Together, the lenders have lost around $14 billion (£8 billion) over the last 12 months.