Japan Sparks Asian Rally

Markets were down in trading today, although there was a big rally overseas. The NASDAQ dropped 55.40 points and closed at 4,756.53. The S&P 500 lost 27.37 points and closed out the trading day at 1,942.02. The Dow led the day in losses, falling 239.11 points to close the day at 16,253.57. In overseas trading, markets were up across the board. Japan led a rally in Asia, while German markets barely posted a gain.

Japan Leads the Way in Asian Rally

Japan 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 was fueled by a buying frenzy that kicked in due to underpriced stocks and investors taking advantage of a boom in the financial sector.

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 Loans

In 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.
Published on Sep 9, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

Posted in ...