Asian Markets Rise For The First Time In Three Days

Asian trade: Asian stocks were helped to stay above the break-even line tonight by a series of positive news releases, coming from both the government and the private sectors. This was the first time in the last three days when the Asian market rose.

The Australian government unveiled a $26 billion stimulus plan tonight to help the economy survive the credit crisis. Half of this money will be used in public spending, following Keynes’ policy, issued some 70 years ago, during the Great Depression. One fourth of the funds, or almost $8 billion, would be used on social security programs, including help for low-income families. The government plans that the stimulus money should be used over the next three quarters.

Remaining in Australian, one of the largest banks in the region, Commonwealth Bank of Australia, said it would post better than expected earnings for 2008. The two reports coming from Australia helped the S&P/Asx out-perform the rest of the Asian open markets, as it gives additional assurance that the economy will avoid a recession.

Also tonight, the BoJ announced it will resume its plan to purchase shares in companies held by banks, in order to support the financial system before the end of the fiscal year. The bank plans to use up to 1 trillion yen (approximately $11.1 billion) to reduce the financial system’s risk coming from the declines in the stock market.

Tonight, the Nikkei slumped 7.62 points (0.10%) to 7,881.60. The Australian S&P/Asx fell 51.70 points (1.48%) to 3,549.10.

Crude oil is barely holding above the $40 area. Crude oil for March delivery fell $0.30 to $40.30.

Gold traded mixed tonight, after it plunged $25 the day ahead. Bullion for immediate delivery gained $0.80 to $902.20.

Previous Wall Street trade: After completing the worst January in history, stocks ended mixed on the first trading day of the new month. At the close of floor trading on the NYSE the DOW failed to hold 8000, closing on 7036.75 after falling 64.11 points (-0.8%) while the S&P finished virtually unchanged on 825.42 after declining 0.46 points (-0.06%). The tech-heavy NASDAQ closed on 1494.43 after gaining 18.01 points (1.22%). Bonds were bought as stocks spent most of the say in negative territory. The yield on the 2-year note fell 6.3 basis points to 0.879% while yield on the benchmark 10-year note fell 13.1 basis points to 2.713%. The dollar also traded mixed on the day, falling 0.27% on the euro and 0.32% against the yen while it gained 0.82% against Australia's currency and 1.83% on the pound.

Previous European trade: European stocks fell Monday with financials leading the declines after Moody's downgraded Barclay's credit rating. The U.K. Ftse fell 71.8 points (-1.73%) to 3,927.51, while the German Dax fell 67.31 points (-1.55%) to 4,301.12.