Expecting the Japan govt to save the market, Asia markets show strong rebound

Expecting that the Japan government will take actions to save the market, stock markets in Asia have risen much.

Analysts say that the Japan government will take actions to save market after many years. Such expectations injected hope into the Japan, Hong Kong, China and other Asia stock markets who performed well. The Nikkei in the afternoon has risen 459.02 points or 6.41% to 7,621.92 points.

China A shares after lunch has risen by quite some bit going near 1,800 points with the financial stocks leading the rise. The Chinese government has setup a special team to tackle the financial crisis and more measure to help the economy may come later.

Hong Kong Hang Seng Index at afternoon close has risen by 6.1%. Premier Wen JiaBao has mentioned that China will support Hong Kong fully to deal with the current financial difficulties. This brings some warmth to the Hong Kong market. Stocks beaten yesterday such as the China bank stocks, insurance blue chips has seen some strong rebound.

For the Taiwan stock market, it has risen 33.1 points or 0.76% to 4,399.97 points.

For Korea, it has risen 5.57% to 991.16 points close to 1000 points.

According to reports, Japan's Kaoru Yosano mentioned on Sunday (26 Oct) that the Japanese government is preparing to inject funds into 'problemetic' banks. The upper limit will be raised from the current 2 trillion yen to 10 trillion yen.

According to reports, the Japan government will also request that the Japan central bank to buy bank stocks and at the same time introduce a more stock stock trading mandate to create more flexible and fair valued accounting standards and so on. The most effective move is announcement by the Japan government Finance Minister Shoichi Nakagawa that Japan will impose a ban Tuesday on naked short selling of stocks.

Yesterday G7 also gave an emegency announcement that the big fluctuation of the Japanese yen recently is causing great concern to the global financial and economic systems and mentioned that there is a need to act together on the problem. But the announcement was not able to stop the yen's strong appreciation and at the same time the Japan government also called for an emergency meeting to discuss measures to save the market.

The announcement by the G7 has investors thinking that the Japanese yen may be intervened again since 4 yers ago. But the announcement does not mentioned any details and the market reactions were normal.