Asia's buying power

After more than two decades in the international banking doldrums, Japan is back. Japan's Nomura Holdings is to pay up to $525 million for Lehman's Asia Pacific franchise and is front-runner to buy the bankrupt bank's businesses in Europe. Nomura with 18,000 staff in 30 countries has its investment banking hub in London, and says bidding for Lehman's European operation makes sense. And senior FX strategist at Standard Chartered, Robert Minikin, said the recovery of Japanese banking was a good sign for all. SOUNDBITE "Certainly I would say that it brings as a source of optimism that eventually over time the issues, such as those we see in the United States with the credit crunch at the moment, given time they can be worked through with appropriate government support. And eventually the banking system as we see in Japan can be revitalised. Of course the developments we see across Asia in terms of stronger growth are certainly helping the Japanese banks at this point." It doesn't stop there. Morgan Stanley has agreed to sell an equity stake of as much as 20 pecent to top Japanese bank Mitsubishi worth an estimated $8.5 billion. But by exceeding the 9,9 percent threshold, the world's number two bank by deposits must receive U.S. regulatory and antitrust approval. And Singapore sovereign fund, GIC, said it saw opportunities in 'distressed assests' in the United States after the financial storm. SOUNDBITE Well I think in terms of market positioning it's clear at this point that U.S. institutions are facing some of the more serious stress. But nevertheless the overall global growth picture and probably banking market dynamics in the medium term still look very healthy and for that reason they are taking this opportunity to expand their presence in what is likely to be a very healthy market going forward." The world's third largest sovereign fund came into the limelight after their high profile investments in UBS and Citigroup in recent months. Stefanie McIn...