CREDIT WRAPUP-Credit fears spread, Australia quashes rumours

By Ian Chua

HONG KONG, Sept 18 (Reuters) – Credit fears flared in Asia on Tuesday prompting Australia’s central bank to quash speculation that one or more regional banks had asked for emergency funding, a day after savers rushed to withdraw deposits from a British lender.

Japan’s finance minister provided soothing words to investors, saying he did not see the U.S. subprime mortgage problems inflicting any serious damage on the world’s second-largest economy after data showed business sentiment at a two-year low. [ID:nT145827]

Financial markets remained jittery over concerns that the global credit crunch could be tightening, although there was also caution ahead of a Federal Reserve meeting later on Tuesday that is widely expected to cut rates.

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