FINANCIAL BRIEFS

FINANCIAL BRIEFS

SEOUL URGED TO FOSTER

FREE FOREIGN EXCHANGESEOUL, South Korea - The U.S. Treasury has urged South Korea to minimize central bank intervention when Seoul's foreign exchange system undergoes substantial deregulation this week, the Finance Ministry said Tuesday.

Charles Dallara, assistant U.S. treasury secretary for international affairs, led a delegation to Seoul to hold two days of talks to discuss bilateral issues in financial markets.

A ministry statement issued at the end of the meeting said Washington had warned that Seoul would invite criticism that it was manipulating rates if its central bank or state-run banks dominated dealing in the foreign exchange market, which introduces a market average exchange rate system on Friday.

TOKYO STOCKS REBOUND;

TRADERS REMAIN WARY

TOKYO - Tokyo's main stock market index surged late Tuesday, recouping about a third of the massive losses from the day before when it fell to the second biggest point decline ever.

The key 225-share Nikkei rose 576.08 points - its ninth largest one-day gain in terms of points - to close at 33,897.95. The index touched a low of 32,793.24 in afternoon trade. It tumbled 1,569.10 Monday.

But market players remain bearish because of expectations of a weaker yen, higher interest rates and slower corporate profit growth - all of which have caused the Nikkei index to fall almost 13 percent since the start of the year.

EXCHANGE IN YUGOSLAVIA

REOPENS AFTER 49 YEARS

BELGRADE, Yugoslavia - Yugoslavia opened the doors of the Belgrade stock exchange Tuesday - the first stock market to open in the country in nearly 50 years.

The Belgrade exchange was founded in 1894, but its doors were closed in 1941.

Its reopening was approved by the government in December as part of economic reforms toward a market economy.

SOVIET STOCK EXCHANGE

LIKELY WITHIN 5 YEARS

HOUSTON - The Soviet Union will likely have a stock market in place within five years, Soviet economist Abel Aganbegyan said.

Mr. Aganbegyan, director of the Soviet Union's Institute of the National Economy and regarded as the economic architect of Soviet President Mikhail Gorbachev's perestroika program, said Monday that a securities law is being written, and he expects it to be accepted by the Supreme Soviet in the near future.