Japan Sparks Asian Rally
PUBLISHED ON: Sep 9, 2015
Japan Leads the Way in Asian RallyJapan posted big gains today, leading the way for a long-overdue rally in Asia. Markets there jumped by nearly 1,500 points in one day of trading, up 7.71%.
The rally in Japan was infectious, with markets across Asia up on news of the rally. Hong Kong's Hang Seng added 4%, Taiwan's main index gained 3.6% and India's Sensex ended trading 1.7% higher.
Puerto Rico Falls Short of Paying LoansIn a government report released just today, Puerto Rico is still looking at default. Although Greece has gotten most of the press lately, Puerto Rico has had plenty of financial problems of its own. The commonwealth first defaulted in August on a portion of its debt, but the news today looks bleak for the future.
The plan released today, which outlines a series of tax hikes and spending cuts meant to raise money for the small island commonwealth, falls $28 billion short. The commonwealth owes its bondholders an additional $14 billion over the next 5 years.
In order to bridge the gap, the tourism hotspot has raised sales taxes to 11.5%, the highest levels in the United States. Puerto Rico is also consolidating all of its schools, lower spending on healthcare, and downsize the number of employees working for the government.