Russia Joins the Victims as Far Eastern Fallout Rolls On

Daily Mail (London), May 19, 1998 | Go to article overview

Russia Joins the Victims as Far Eastern Fallout Rolls On


Byline: ANDREW ALEXANDER

IT WAS a bumpy day for equities right across the globe yesterday as the Indonesian crisis rippled through markets. The Footsie inevitably was affected, falling 123 points at one stage but managing to claw its way back to a loss of 92 (1.6pc) to 5826.

Moscow was hit by panic selling, with the market crashing nearly 12pc.

Fears are rife that the rouble will be devalued. The crisis is reminiscent in some ways of the Far East where currency devaluations and stock market collapses followed each other.

Continental markets were also down and Wall Street offered no encouragement.

In the Far East itself the only pleasant surprise came in Tokyo where the Nikkei was 142 points up at 15384. However, official support was suspected.

Otherwise falls of 3pc or so (5pc in Jakarta) were common, coming of course in already desperately depressed markets.

The Japanese government did not choose to support the yen, which fell past the 136-to-the-dollar rate. The failure of the G8 con- ference in Birmingham to produce any statement supporting the Japanese currency spurred dealers to sell.

It was only a few months ago that Tokyo was drawing a line in the sand at 125 yen to the dollar. The next stop is hard to predict. At this rate it could be 140 or even 150.

Such a trend could easily accelerate the outflow of Japanese savings looking for decent returns.

With official interest rates at 0.5pc, bond yields everywhere else look alluring to Japanese savers. The returns on Japanese equities are also depressing. With the economy already in recession, banks there are cutting back on loans. New figures show the number of corporate bankruptcies was up by 21pc on a year ago.

On current prospects for profits the Nikkei looks even more overvalued at 15,000 or so than it was when it stood at 39,000 10 years ago. The urge to invest overseas could spur a further fall in the yen, producing a vicious circle.

The way that the Far East crisis is plunging Japan into more trouble is plain enough. Her banks are principal lenders to other countries and industries in the region and she is the biggest trading partner of many of these countries.

There is still a widespread assumption that the crisis in the region will have a limited effect on the West. It will slow down growth a bit, bring in useful cheap exports to keep down inflation and hit Western exporters. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Russia Joins the Victims as Far Eastern Fallout Rolls On
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.