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Japan stocks rise in late rally | Japan stocks rise in late rally |
(20 minutes later) | |
Japan's Nikkei index has rallied by more than 5% in late trading, after earlier falling below the 7,000 mark for the first time in 26 years. | Japan's Nikkei index has rallied by more than 5% in late trading, after earlier falling below the 7,000 mark for the first time in 26 years. |
Share prices across Asia initially lost ground again on opening, following volatile trading throughout the world. | Share prices across Asia initially lost ground again on opening, following volatile trading throughout the world. |
Tokyo authorities said that in an attempt to stabilise markets they will bring forward a ban on traders selling shares that they do not already own. | |
There were also gains in the markets in Hong Kong and South Korea. | |
Korea's Kospi index initially dropped 2.6%, but later rose to finish 5% up on the day. | |
In Hong Kong, shares ended the morning up 6.1%, although traders said this was to be expected after a 12.7% plunge on Monday. | In Hong Kong, shares ended the morning up 6.1%, although traders said this was to be expected after a 12.7% plunge on Monday. |
The yen fell sharply against the dollar and the euro. | The yen fell sharply against the dollar and the euro. |
Japan's Finance Minister Shoichi Nakagawa told reporters the ban on naked short-selling, which had been due to come into force on 4 November, would be brought forward. | Japan's Finance Minister Shoichi Nakagawa told reporters the ban on naked short-selling, which had been due to come into force on 4 November, would be brought forward. |
Naked short selling involves making a deal to sell shares that you do not own and relying on being able to buy the shares before the deal has to be settled. | |
It is done by traders who hope that the price of the shares will fall between the sale and the purchase of the shares, allowing them to pocket the difference. | |
The announcement follows similar moves by governments in the US, Australia and Europe. | The announcement follows similar moves by governments in the US, Australia and Europe. |
"I decided on the measure because these few days will be critical and stock exchanges are facing risks unless we take quick action," said Mr Nakagawa. | "I decided on the measure because these few days will be critical and stock exchanges are facing risks unless we take quick action," said Mr Nakagawa. |
"Japan was easily under pressure from other sources and that is why is was important to change the rules to US and European standards." | "Japan was easily under pressure from other sources and that is why is was important to change the rules to US and European standards." |
Yen warning | Yen warning |
The US and Europe ended lower on Monday amid a growing belief that key economies are heading into recession. | The US and Europe ended lower on Monday amid a growing belief that key economies are heading into recession. |
On Wall Street, the main Dow Jones index fell 2.42%, despite being boosted earlier in the day by a surprise rise in new home sales in September. | On Wall Street, the main Dow Jones index fell 2.42%, despite being boosted earlier in the day by a surprise rise in new home sales in September. |
The FTSE 100 in London closed down 0.79%, the Cac 40 in Paris ended down 3.96% but the Dax in Frankfurt was up 0.91%. | |
Earlier the FTSE had fallen 5.6% to 3,665 points - its lowest level since April 2003. | Earlier the FTSE had fallen 5.6% to 3,665 points - its lowest level since April 2003. |
On the currency markets, Japan's yen has fallen back slightly after reaching a 13-year high against the US dollar on Monday. | On the currency markets, Japan's yen has fallen back slightly after reaching a 13-year high against the US dollar on Monday. |
That rise came despite warnings from the Group of Seven (G7) industrialised nations that the currency's strength was a threat to economic stability. | That rise came despite warnings from the Group of Seven (G7) industrialised nations that the currency's strength was a threat to economic stability. |
Mr Nakagawa said he would "continue to watch currency markets with great interest", while a government spokesman said they would consider whether there were "further effective measures" to be taken. | Mr Nakagawa said he would "continue to watch currency markets with great interest", while a government spokesman said they would consider whether there were "further effective measures" to be taken. |
Economics Minister Kaoru Yosano told a news conference that the yen's rise was "astounding" but did not reflect Japan's economic fundamentals. | Economics Minister Kaoru Yosano told a news conference that the yen's rise was "astounding" but did not reflect Japan's economic fundamentals. |
Meanwhile Japan's Prime Minister Taro Aso has said he will delay calling a general election in order to handle the economic crisis, according to Kyodo news agency. | |
Mr Aso, who took office a month ago, had been widely expected to call an early election to address the deep divisions in the Japanese parliament. | Mr Aso, who took office a month ago, had been widely expected to call an early election to address the deep divisions in the Japanese parliament. |