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Dubai bailout allows Asian stocks to rebound
Early losses in the week have been cast off by Asian markets after the announcement that Abu Dhabi would be bailing out its struggling neighbour Dubai.
The news, which will ease trading conditions and undoubtedly keep pensions on the continent looking stronger, came as a relative surprise to stocks across the continent.
Abu Dhabi, which is much more oil-rich than many other emirates in the Middle East, decided to help underwrite the debts of the Dubai World investment conglomerate, which has recently been hit hard by the effects of the current economic downturn after holding out for the most part of the last few months.
While the Nikkei in Japan remained relatively unchanged, South Korea and Hong Kong saw improvements in shares in the Kospi and Hang Seng indices respectively.
Australian and Chinese markets also reported marginal improvements.
It follows news that pensions in Japan are in a particularly dire situation at the moment, with German press agency dpa outlining how many citizens in the island nation are hoping that the new generation will sort out the problems of a population which is quickly shifting to an older demographic.
Posted by Matt Gardner
