The head of the US Federal Reserve backed a stimulus plan for the flagging US economy, buoying stock markets despite gloomy unemployment figures and fears the rebound could be limited.
Asian markets tracked gains on Wall Street, where stocks soared after US Federal Reserve chief Ben Bernanke said US lawmakers should consider a second stimulus plan, warning the world’s largest economy risked a “protracted slowdown.”
His endorsement came after a forecast that the financial crisis could push worldwide unemployment to a record high and as new bank rescue efforts were unveiled in France and Sweden.
“With the economy likely to be weak for several quarters and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate,” he told the US House of Representatives budget committee.
Asked to say if the US economy was in recession, he replied only there was a “very serious slowdown in the economy, which has very serious consequences for the public.”
The fallout for workers was made clear in a report by the International Labor Organization, which warned that the number of unemployed worldwide would increase from 190 million last year to 210 million by late next year — a new record.
China’s weaker-than-expected economic growth figures released on Monday highlighted the extent to which the credit crunch has spread around the world.
But Australia’s central bank chief sounded a note of optimism, saying the danger of a “global catastrophe” stemming from the crisis that began last year with subprime US home loans had decreased thanks to government interventions.
“At moments like this, it is hazardous to make predictions,” Reserve Bank of Australia Governor Glenn Stevens told an audience in Sydney yesterday.
“However, the world is, it seems to me, getting on to a better path. As a result, the likelihood of a global catastrophe has in fact declined over the past couple of weeks,” he said.
Across Asia, stock markets were mainly up yesterday, with the Tokyo Stock Exchange’s benchmark Nikkei index up 3.34 percent at the close.
Sydney was up 3.9 percent, New Zealand shares rose 2.15 percent and Taipei was up 0.22 percent. Hong Kong shares were flat at midday, while Shanghai was up 0.42 percent. Seoul bucked the trend by finishing 0.95 percent lower.
The leading Wall Street index, the Dow Jones Industrial Average, soared 4.65 percent to 9,263.68 just after the closing bell Monday.
In Europe, the London FTSE 100 index of leading shares gained 5.41 percent on Monday, the CAC 40 in Paris jumped 3.56 percent, and the Frankfurt Dax added 1.12 percent.
The current financial crisis led to several spectacular bank failures and prompted governments around the world to put forward more than US$3 trillion to shore up banks, in addition to massive cash infusions into the banking system.
Sweden on Monday presented a plan worth more than US$206 billion to help its financial sector.
Pakistan, teetering on the edge of economic meltdown, was consulting with IMF representatives in Dubai.
Nvidia Corp yesterday unveiled its new high-speed interconnect technology, NVLink Fusion, with Taiwanese application-specific IC (ASIC) designers Alchip Technologies Ltd (世芯) and MediaTek Inc (聯發科) among the first to adopt the technology to help build semi-custom artificial intelligence (AI) infrastructure for hyperscalers. Nvidia has opened its technology to outside users, as hyperscalers and cloud service providers are building their own cost-effective AI chips, or accelerators, used in AI servers by leveraging ASIC firms’ designing capabilities to reduce their dependence on Nvidia. Previously, NVLink technology was only available for Nvidia’s own AI platform. “NVLink Fusion opens Nvidia’s AI platform and rich ecosystem for
WARNING: From Jan. 1 last year to the end of last month, 89 Taiwanese have gone missing or been detained in China, the MAC said, urging people to carefully consider travel to China Lax enforcement had made virtually moot regulations banning civil servants from making unauthorized visits to China, the Control Yuan said yesterday. Several agencies allowed personnel to travel to China after they submitted explanations for the trip written using artificial intelligence or provided no reason at all, the Control Yuan said in a statement, following an investigation headed by Control Yuan member Lin Wen-cheng (林文程). The probe identified 318 civil servants who traveled to China without permission in the past 10 years, but the true number could be close to 1,000, the Control Yuan said. The public employees investigated were not engaged in national
ALL TOGETHER: Only by including Taiwan can the WHA fully exemplify its commitment to ‘One World for Health,’ the representative offices of eight nations in Taiwan said The representative offices in Taiwan of eight nations yesterday issued a joint statement reiterating their support for Taiwan’s meaningful engagement with the WHO and for Taipei’s participation as an observer at the World Health Assembly (WHA). The joint statement came as Taiwan has not received an invitation to this year’s WHA, which started yesterday and runs until Tuesday next week. This year’s meeting of the decisionmaking body of the WHO in Geneva, Switzerland, would be the ninth consecutive year Taiwan has been excluded. The eight offices, which reaffirmed their support for Taiwan, are the British Office Taipei, the Australian Office Taipei, the
CAUSE AND EFFECT: China’s policies prompted the US to increase its presence in the Indo-Pacific, and Beijing should consider if this outcome is in its best interests, Lai said China has been escalating its military and political pressure on Taiwan for many years, but should reflect on this strategy and think about what is really in its best interest, President William Lai (賴清德) said. Lai made the remark in a YouTube interview with Mindi World News that was broadcast on Saturday, ahead of the first anniversary of his presidential inauguration tomorrow. The US has clearly stated that China is its biggest challenge and threat, with US President Donald Trump and US Secretary of Defense Pete Hegseth repeatedly saying that the US should increase its forces in the Indo-Pacific region
RSS