Around the World's Markets: Tokyo

SHARES ROSE modestly following the overnight cut in US interest rates. The Nikkei index rose 1.29 per cent against a backdrop of stable overseas equity markets, closing at 14,599.23.

Traders were encouraged by signs that Japan's credit crunch would cause fewer bankruptcies than feared; banks were said to be ready to forgive part of the credit extended to Haseko Corp, a contractor facing bankruptcy. The market is looking to tomorrow's meeting of the ruling Liberal Democratic Party, which may result in a cut in consumption tax.