Tokyo bourse rejects calls for halt, to keep markets open

[Fuddnik]

Source: Reuters, via Yahoo news.

Tokyo bourse rejects calls for halt, to keep markets open

reuters


On Wednesday March 16, 2011, 10:34 pm

TOKYO/NEW YORK (Reuters) - The Tokyo Stock Exchange and Japanese financial regulators plan to keep markets open despite a report that some foreign financial institutions are calling for Japan's stock market to halt trading.

The Nikkei news agency said officials from more than 10 non-Japanese financial firms held a conference call on Tuesday afternoon to discuss the situation in Japan, where markets have been rocked by an earthquake, tsunami and nuclear disaster over the past week.

Some participants called for the market to be closed immediately, Nikkei reported, citing people familiar with the discussion.

The report said that foreign firms were looking for a trading halt because the "market was experiencing too much volatility," but did not elaborate.

(more)

Read more: http://finance.yahoo.com/news/Tokyo-bourse-rejects-calls-rb-1673183793.html?x=0&.v=1

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As of 10:28 pm EST, Nikkei was down 189pts, or 2.09%.

[caseymoz]

1. Oh, If the Nikei has to close, you talk about a financial shock.

Also bad news, it seems that the markets anticipate that Japan will cash in some bonds holdings in order to rebuild.

Guess whose bonds that would be?

We might face another financial crisis.

[Old and In the Way]

2. I'm pretty sure Japan is one of our largest holders of US Treasury notes.

If they start liquidating these investments, obviously understandable given their situation, who's goes to buy them at current value? I would think this will have a direct negative impact on the USD valuation. Yen to dollar is gaining ground, I would think the dollar buying power will take a hit in other markets, to a lesser degree.

[AtheistCrusader]

3. Actually, it pretty much vapor-locked today.

The yen carry trade is essentially zero. Everything that isn't nailed down is being liquidated.

Check AUDJPY and USDJPY.

It might bounce back, we'll see. Lots of phone calls going fast and furious right now. (side bet, this is going to nuke JP Morgan, so to speak)

[caseymoz]

4. They are the second largest holder of US bonds, I believe. nt