The Asian bourses ended mixed yesterday with the Nikkei 225 up 0.10%, Hang Seng up 1.21%, All Ords up 0.85% and Straits Times down 1.33%. Meanwhile, the Asian credit benchmarks continue to improve with the iTraxx Asia ex Japan 3.33bps tighter. The past days saw a general strong running in the Asia equity markets with new highs set in China, Hong Kong, South Korea, India, Indonesia and Australia.
To stave off the ripples of the US subprime crisis and credit squeeze in the financial system, Russia's central bank is set to lower the minimum reserve requirements for banks while also accepting banks' credits as collateral for loans for the first time. Observers warn that refinancing demands could rise to $12bn -$15bn per day in October and November. Fitch downgraded the rating of Russian Standard Bank, Russia's top consumer lender, BB to BB-.
The Bank of Japan is to set the key interest rate today, widely expected to keep the rate at 0.5%. Although some quarters are clamoring for an increase in interest rate to ease the pressure on yen to weaken.
US technology stocks rose but profit warnings from blue chip names dragged the Dow Jones Industrial down 0.61% and S&P500 down 0.17%.
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