Earlier on Thursday evening EDT, after a meeting with congressional leaders, Treasury Secretary Henry Paulson said that systemic risks in markets need to be dealt with, and a solution to meet U.S. needs is necessary.
He said the heart of the problem is in illiquid assets and that he wants them off balance sheets.
He said the approach he wants will require legislation and he will work closely with congress on a proposal.
Trinh said, "All the focus is on Paulson and others as they plan to try and come up with a more comprehensive solution to the issue facing the U.S."
"It's been announced that there will an announcement over the weekend," she said.
"Equities are well bid on the expectation that this plan will be able to shore up markets in general. I would expect markets to continue in this vein until Monday."
She said on Monday Asian equity markets will see a volatile day, "It will be the first chance to respond to the weekend announcement."
Turning to the recovery of the Aussie dollar against the USD, she said "Carry trades have been well bid on increased risk appetite."
Asia-Pacific fixed income markets are declining and equities are higher with yields on Australian 10-year bonds up 6.2 bps to 5.59 % and Japanese 10-year government bonds up 4.0 bps to 1.54 %.
Sydney's S&P ASX 200 is up 187.80 points to 4795.098.
The Japanese Nikkei is up 364.09 points to 11853.39 and the Hang Seng is still closed, down 4.73 points to 17632.46. but set to open at 7.07%.
Yields on three-year Australian bonds were down 10.1 bps to 6.58 and the Australian 90-day March 09 contract was down 3.0 ticks to 93.41.
The Euroyen March 09 contract was down 2.5 ticks to 99.18.
The Australian dollar was up 0.21 cents to 0.8068 against the USD and up 0.59 cents to 0.8588 against the Canadian dollar.
Against the yen, the U.S. dollar was up 0.98 points to 106.42 and the Canadian dollar was up 0.66 points to 100.07.
The euro was down 1.00 cents to 1.4250 USD.
All data taken at 9:53 p.m. EDT.
Generated by CEP Newswires
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