Hopes for new bailout plan
JAPAN: Global stocks rallied Wednesday on hopes that the US Senate
will soon approve a revised 700-billion-dollar Wall Street bailout seen
as vital to preventing the collapse of more financial giants.
The expected vote, which comes after the House of Representatives
killed the original package, follows pleas from President George W. Bush
for quick action before the US economy slumps into a disastrous
recession.
In a bid to build Republican backing for the bailout in the House,
the Senate bill will include measures that extend tax cuts set to expire
and an expansion of federal insurance for bank deposits.
Stocks rose in Asia and Europe following a powerful rally on Wall
Street as hopes grew that the package could clear Congress in the coming
days.
Tokyo ended up 0.96 percent as Sydney soared 4.2 percent. European
markets followed suit, with London rising 1.15 percent at the open as
Frankfurt gained 0.43 percent and Paris advanced 0.26 percent.
CMC Markets senior dealer Dominic Vaughan in Sydney described the
rebound as a "corrective bounce".
Tokyo, Wednesday, AFP |