The Japanese government is considering emergency measures next week to shore up stocks prices after the key index of the Tokyo Stock Exchange fell to a new two-decade low, reports said today.
The leading proposal is to reinforce the Bank Shareholdings Purchase Corp, a governmental body set up to purchase shares from banks, the Nihon Keizaiand Yomiurinewspapers said.
The government and ruling parties may temporarily scrap a requirement that banks pay a fee of 8 per cent of the selling price of shares bought by the body, the reports said.
Yesterday, the Tokyo Stock Exchange's Nikkei-225 average lost 91.62 points to end at 7,607.88, its lowest close since November 9th, 1982.
The market was weak due to concerns over earnings of electronics giants and the impact of the Severe Acute Respiratory Syndrome virus on the Japanese economy.
Financial markets in Japan are closed today for a national holiday.
AFP