Tail wags dog
Article Abstract:
The Tokyo and Osaka stock exchanges doubled the commission rates on futures trading in Mar 1992 to divert trading to the depressed cash market. This is one of a string of measures instituted to curb the volume of futures markets, which was intended as a hedge for institutional investors but has become an instrument of speculation and was partially a cause of the stockmarket crash. Favoring home-grown equity markets against foreign-invented futures trading could be another motive. Critics fear that the measures will divert investments to nearby countries such as Singapore.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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New crystal ball needed
Article Abstract:
The Nikkei-225 stock average slid below 16,000 points on Jun 22, 1992 and proved a lot of Japanese and foreign brokers wrong. As a result, a significant number of their clients lost heavily. The Tokyo market is expected to remain bearish for quite some time. The market yield on Tokyo equities must first rise to competitive levels before stock prices can ever revive. The Bank of Japan should also lower interest rates to increase the liquidity of the economy.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
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Comment about this article or add new information about this topic: