Nikkei's Rebound Aided by Internal, Foreign Measures

The Nikkei 225 closed today (Thursday, October 30, Tokyo time) at 9,029.76, some 29% up from an interday low of 6,994.90 hit just two days before on October 28.

While firmer markets overseas and the Fed rate cut helped, the market was also boosted by the October 30th announcement by Taro Aso's Cabinet of a second package of economic, stock market and financial countermeasures.

On the table as of the close of business today is:

Market Countermeasures

1. Expanded and extended tax breaks on securities trading.
2. Expanded scope for capital infusions for financial institutions.
3. Resumption of government purchases of stocks held by financial institutions.
4. More stringent short-selling restrictions.

Economic Countermeasures

1. Tax cuts for individuals in addition to JPY2 trillion of "helicopter money" direct distributions.
2. Expanded credit guarantees for small and medium-sized enterprises (SMEs).
3. Reduced unemployment insurance taxes.
4. Reduce expressway toll fares.

Monetary Countermeasures

1. Rate cut by the BOJ -- widely expected.
2. Pumping of massive amounts of liquidity into the money markets.
3. Resumption of Bank Stock Purchasing by the BOJ under study.

Also helping was the yen's retreat from recent highs against the USD and EUR.