0347 GMT Dow Jones Japan yields rise across curve at afternoon o

AAP General News (Australia)
08-03-1999
0347 GMT Dow Jones Japan yields rise across curve at afternoon o

0347 GMT Dow Jones Japan yields rise across curve at afternoon
open on Hayami remark at lunch break that BOJ would move to change
monetary policy when economy gets better. 3-month Euroyen futures
briefly soared to 0.42 pct from 0.36 pct and 10-yr JGB yield to
1.895 pct from 1.855 pct. "We know that the BOJ wouldn't change the
policy now, but people moved to sell Euroyen futures (beyond the
end o

0342 GMT Dow Jones Washington Post quotes U.S. officials as
saying warplane sorties by Taiwan and China over Taiwan Strait have
risen greatly - China, which rarely sends planes there, has flown
more than 100 in past three weeks - and that Clinton Administration
is concerned the show of force may accidentally lead to fighting.
(AXT)

0337 GMT Dow Jones China leaders hope a few dull tax adjustments
will help get economy going - government cut stock-trading tax,
raised export-tax rebates, and is debating levies on interest
earned from bank savings deposits and government bonds. But some
economists doubt measures can stimulate consumption (see Telerate
page 1172 or 4255 or word-search on "Asia Watch"). (JTA)

0324 GMT Dow Jones Taiwan government-controlled funds reportedly
buying after key index fell below psychologically important 7000
level amid China woes and concern over foreign fund outflows. Index
now down 0.7 pct, at 7145.19. (YHS)

0318 GMT Dow Jones Philippine exports offer more good news on
economy, rising 19.5 pct on-year in June to $2.856 billion -
biggest growth since 22.5 pct gain in January. Rise led by 27.1 pct
on-year growth in shipments of electronics and components,
accounting for 54.9 pct of total shipments in June. Data may help
local shares; stock exchange and forex market closed today on
monsoon and flooding in parts of Manila. (CLT)

0310 GMT Dow Jones Thai stocks up 1.4 pct at open on resolution
between authorities and management of state-run Krung Thai Bank on
forming a separate asset management corporation to handle problem
loans, followed by another central bank contribution of THB108
billion in new capitalization within two weeks. KTB already has
biggest market cap of stock, although it is second-biggest bank in
terms of deposits, assets and loans after Bangkok Bank. (TLF)

0225 GMT Dow Jones USD/THB stable around previous close of 37.32
after slight volatility overnight. Economic indicators show
recovery ahead, but meanwhile, baht is weighed down by low rates
and overhang of non-performing loans, and China-Taiwan tensions,
while U.S. rates expected to rise. Tuesday range 37.05-37.47. (TLF)

0221 GMT Dow Jones HKD forwards easier across curve as lack of
negative news sees risk premia ease further from recent peaks;
1-year at 1050-1070. But traders see limited downside as market
awaits further clues on likely course of U.S. monetary policy.
(EVZ)

0217 GMT Dow Jones Bids in Tuesday's NZ$200 million T-bill
tender came to just NZ$335 million - the lowest level of year -
while tender margins to bank bill curve have narrowed 6-8 bps from
month ago. This reflects growing market view that Y2K won't be big
worry and that central banks will keep banking systems afloat with
sufficient liquidity, one dealer says. (JCB)

0215 GMT Dow Jones USD/JPY vanilla markets seeing some interest;
1-month traded in $100m at 13.75 pct recently. Good two-way
interest also exists, skewed toward selling, in JPY call 118.00
with 1-month reverse knock-out 108.00, based off spot 114.70, vol
13.75 pct, giving TV 2.37 pct and delta 16 pct. (SLS)

0213 GMT Dow Jones 10-year cash JGBs still weak amid lack of
steady investor buying at downside, as seen in recent sessions.
While lead 10-year futures recouped some gains, "this is a shaky
level, and after all the volatility in the morning, we can always
fall back to test the downside in the afternoon," says Japan bank
dealer. (SKX)

0212 GMT Dow Jones Taiwan stock index now down 3.13 pct at
6970.16 as China tensions and outflows of foreign funds weigh on
investors. After 7000 support level breached, index now eyeing
6800, say analysts. (KWC)

0210 GMT Dow Jones USD/JPY again edges slightly higher to
114.70-75 level on short-covering by interbank dealers. But Tokyo
traders say potential gain above 115.00 will be capped on offers
from U.S. speculative accounts. (HXK)

0145 GMT Dow Jones USD/TWD opens up on China missile test;
dealers report accelerating outflows of foreign equity funds as
stock market continues tumble (down 1.8 pct in early trade). Range
of 32.140-32.220 expected today as central bank likely to intervene
to limit volatility. (BKL)

0140 GMT Dow Jones Good two-way business being seen in AUD/USD
but emphasis is on buying, says trader in Sydney; intra-day target
is 0.6550 weak resistance, then 0.6580 options strikes, he says. If
this breaks, 0.6650 is next strong resistance, adds trader in
Tokyo. (SLS)

(Dow Jones Market Talk, a new feature, offers up-to-the-minute
spin on major news and events impacting the fixed-income and
foreign exchange markets. Comments, please, to
andrew.torchiadowjones.com or (65) 421-4515.)

(END) Dow Jones Newswires 03-08-99

KEYWORD: 0347 GMT Dow Jones Ja

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