|
TOKYO, JAPAN - JAPANESE share prices opened up more than one per cent on Wednesday following an overnight rally on Wall Street amid hopes of a possible rescue of troubled insurance giant American International Group (AIG).
The benchmark Nikkei-225 index gained 156.88 points or 1.35 per cent to 11,766.60 in the first 10 minutes of trading.
In New York the Dow Jones Industrial Average rallied 1.30 per cent in a volatile session on Tuesday as nervous traders were buoyed by reports of a possible rescue of AIG.
US media reported the US Federal Reserve was close to finalising a deal to rescue AIG from collapse by extending an US$85 billion (S$121.5 billion) loan in exchange for a nearly 80 per cent stake in the company.
All of AIG's assets would be pledged to secure the loan, according to the New York Times and CNBC business network, citing people briefed on the negotiations.
The market also appeared encouraged by the Federal Reserve decision to hold interest rates steady despite the recent market turmoil, a move seen as a sign of confidence in a recovery. -- AFP
| 
