No war limits on Tokyo trade
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Tokyo markets opened higher following news of the apparent end of diplomatic efforts to disarm Iraq.
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TOKYO, Japan (Reuters) -- The Tokyo Stock Exchange said on Tuesday it plans to stay open in the event of any war with Iraq and keep normal share-price limits after a newspaper reported the bourse would impose stricter rules on daily price moves.
The Nihon Keizai Shimbun said Japan's Financial Services Agency (FSA) will ask the nation's stock exchanges to limit the band for price fluctuations to maintain market stability.
"If the FSA came and talked to us like it is being reported, then I can't say for sure what would happen. But in principle, we plan to open and trade as usual," said Hiroshi Kawahara, a spokesman at the Tokyo Stock Exchange.
"As usual includes the normal daily limits on stock-price falls and rises."
After the September 11 attacks, the Tokyo bourse cut daily price limits by half and the market opened half an hour later than usual.
No special measures were taken in futures markets as a "circuit breaker" rule was already in place. Under that rule, which still applies, trading is halted for 15 minutes whenever futures prices fall or rise beyond a specified range.
Another spokesman at the Tokyo bourse said in the past that a war with Iraq has been widely expected and is therefore a very different situation.
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