BANGKOK (AP) — Asian stock markets soared Thursday after major central banks acted in concert to lower borrowing costs, hoping to prevent a global credit crisis similar to the one that followed the collapse of Lehman Brothers in 2008.
Benchmark oil rose above $100 per barrel and the dollar fell against the euro but rose against the yen.
Japan's Nikkei 225 index jumped 2.4 percent to 8,638.72. South Korea's Kospi surged 4.2 percent to 1,925.17 and Hong Kong's Hang Seng vaulted 5.9 percent to 19,041.36. Benchmarks in Australia, India, Singapore and Taiwan all rose more than 2.5 percent. Mainland Chinese shares on benchmark indexes in Shanghai and Shenzhen rose more than 3 percent.
On Wednesday, the central banks of Europe, the U.S., Britain, Canada, Japan and Switzerland reduced the rates that banks must pay to borrow dollars in order to make loans cheaper so that banks can continue to operate smoothly.
"The moves were cheered by markets as it shows central banks are willing to work together to ease Europe's sovereign debt crisis," Stan Shamu of IG Markets in Melbourne said in a report.
Separately, China's central bank also acted to release money for lending and help shore up slowing growth by lowering bank reserve levels for the first time in three years. The action late Wednesday signaled a key change in monetary policy, analysts said.
"I think the government has the faith now that inflation has peaked, and that now it's time to change the monetary policy from a tight one to a loose one," said Francis Lun, managing director of Lyncean Holdings in Hong Kong.
Chinese banks soared on the news. Hong Kong-listed Industrial & Commercial Bank of China, the world's largest bank by market value, surged 10.4 percent.
By easing reserve requirements, the central bank made available some 350 billion yuan ($55 billion) that otherwise would have been locked up in reserves. Given typical investment trends, much of that money could find its way back into the property sector.
Hong Kong-listed China Resources Land rose 11.6 percent and Poly Real Estate Group added 8.7 percent.
Steel and industrial shares also jumped. Japanese steel producer JFE Holdings shot up 9.6 percent and South Korean steel giant POSCO gained 7.5 percent.
Worries about Europe's financial system — and the reluctance of the European Central Bank to intervene — have caused borrowing rates for European nations to skyrocket. Central banks will now make it cheaper for commercial banks in their countries to borrow dollars, the dominant currency of trade.
But it does little to solve the underlying problem of mountains of government debt. Analysts said that unless there is dramatic action at an upcoming summit of European leaders on the debt crisis, markets are in for further shaky times.
"Until we see some definitely agreed on and, when necessary, legislated initiatives from Europe, optimism can be premature," said Ric Spooner, chief market analyst at CMC Markets in Sydney. "Until we see that sort of thing, there will be a ceiling on the rally."
The central banks' move sent the Dow Jones industrial average soaring 490 points, its biggest gain since March 2009 and the seventh-largest of all time.
The Dow rose 4.2 percent to close at 12,045. The Standard & Poor's 500 closed up 4.3 percent at 1,247. The Nasdaq composite index closed up 4.2 percent at 2,620.
In energy trading, benchmark crude for January delivery was up 39 cents to $100.75 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 57 cents to settle to $100.36 on Wednesday.
In currencies, the euro rose to $1.3463 from $1.3435 late Wednesday in New York. The dollar rose to 77.67 yen from 77.56 yen.
by Associated Press Dec 1, 2011
Asian stocks soar on joint central bank action | CanadianBusiness.com
Showing posts with label banking industry. Show all posts
Showing posts with label banking industry. Show all posts
Thursday, December 1, 2011
Sunday, November 6, 2011
Chase, Wells Fargo drop plan to charge fee for debit cards
A month after Bank of America got pummeled by consumers and lawmakers for introducing a monthly debit-card fee, other big banks are backing off plans to charge customers for using their debit cards.
JPMorgan Chase has decided not to charge customers to use their debit cards, according to a source with knowledge of the plans but who isn't authorized to discuss the matter.
Wells Fargo also announced late Friday that it has cancelled plans to test a debit card fee in five states. "Wells Fargo remains committed to helping our customers succeed financially and we believe this decision is in the best interest of our customers," a Well Fargo spokesperson said.
In February, Chase launched a pilot program that charged customers in Georgia and Wisconsin a $3 monthly debit card fee. The program will expire in November and Chase doesn't plan to extend it, according to the source.
Consumers Union applauded the decision and called on Bank of America to rescind its plans to start charging customers a $5 monthly debit card fee, starting in 2012.
"Consumers Union has heard from thousands of consumers across the country who are outraged that Bank of America is instituting the $5 monthly debit card fee," said Norma Garcia, manager of Consumers Union's financial services program.
"We always take into consideration feedback we receive from our customers," a Bank of America spokesperson said in response, "and are committed to being clear and transparent about our fees so that customers understand their options in paying for services and ways they can avoid fees."
Starting in November, SunTrust, a major regional bank, will charge customers a $5 monthly debit card fee. Regions Financial, based in Birmingham, Ala., has also added a $4 monthly debit card fee. Wells Fargo is testing a $3 monthly fee in some of its markets.
Banks that have raised their fees said a regulation that took effect Oct. 1 left them with no other choice. That regulation cut in half the fees financial institutions can charge retailers whenever consumers use their debit cards for purchases. The regulation exempted banks and credit unions with assets of less than $10 billion.
But other big banks have made of a point of publicizing the fact that they don't charge a debit card fee. Citibank earlier said it decided not to charge a debit card fee because customers made it clear that they didn't want to pay for the convenience of using their cards. TD Bank put out a press release Friday stating that it will continue to offer its customers debit cards with no monthly fee.
TD Bank said a survey of its customers revealed that 70% would discontinue their account if the bank charged a debit card fee.
Most small banks and credit unions don't charge debit card fees. In an effort to attract new deposits, some of those institutions have launched advertising campaigns urging angry customers of big banks to switch accounts.
A grassroots effort on Facebook has designated Nov. 5 "Bank Transfer Day" and is encouraging consumers who are unhappy with new bank fees to move their accounts to credit unions or community banks.
by Sandra Block USA Today Oct. 28, 2011 04:25 PM
Chase, Wells Fargo drop plan to charge fee for debit cards
JPMorgan Chase has decided not to charge customers to use their debit cards, according to a source with knowledge of the plans but who isn't authorized to discuss the matter.
Wells Fargo also announced late Friday that it has cancelled plans to test a debit card fee in five states. "Wells Fargo remains committed to helping our customers succeed financially and we believe this decision is in the best interest of our customers," a Well Fargo spokesperson said.
In February, Chase launched a pilot program that charged customers in Georgia and Wisconsin a $3 monthly debit card fee. The program will expire in November and Chase doesn't plan to extend it, according to the source.
Consumers Union applauded the decision and called on Bank of America to rescind its plans to start charging customers a $5 monthly debit card fee, starting in 2012.
"Consumers Union has heard from thousands of consumers across the country who are outraged that Bank of America is instituting the $5 monthly debit card fee," said Norma Garcia, manager of Consumers Union's financial services program.
"We always take into consideration feedback we receive from our customers," a Bank of America spokesperson said in response, "and are committed to being clear and transparent about our fees so that customers understand their options in paying for services and ways they can avoid fees."
Starting in November, SunTrust, a major regional bank, will charge customers a $5 monthly debit card fee. Regions Financial, based in Birmingham, Ala., has also added a $4 monthly debit card fee. Wells Fargo is testing a $3 monthly fee in some of its markets.
Banks that have raised their fees said a regulation that took effect Oct. 1 left them with no other choice. That regulation cut in half the fees financial institutions can charge retailers whenever consumers use their debit cards for purchases. The regulation exempted banks and credit unions with assets of less than $10 billion.
But other big banks have made of a point of publicizing the fact that they don't charge a debit card fee. Citibank earlier said it decided not to charge a debit card fee because customers made it clear that they didn't want to pay for the convenience of using their cards. TD Bank put out a press release Friday stating that it will continue to offer its customers debit cards with no monthly fee.
TD Bank said a survey of its customers revealed that 70% would discontinue their account if the bank charged a debit card fee.
Most small banks and credit unions don't charge debit card fees. In an effort to attract new deposits, some of those institutions have launched advertising campaigns urging angry customers of big banks to switch accounts.
A grassroots effort on Facebook has designated Nov. 5 "Bank Transfer Day" and is encouraging consumers who are unhappy with new bank fees to move their accounts to credit unions or community banks.
by Sandra Block USA Today Oct. 28, 2011 04:25 PM
Chase, Wells Fargo drop plan to charge fee for debit cards
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