Japanese Nikkei index trims its losses after Credit Suisse’s measures to enhance liquidity

Japan’s Nikkei index pared its losses on Thursday after hitting a near two-month low in a volatile session, after Swiss bank Credit Suisse announced plans to boost its cash position.

This week witnessed sharp volatility in Japanese banks, which caused the Nikkei index to drop below 27,000 points for the first time since January 23, amid fears of a continuation of crises after the collapse of Silicon Valley and concerns about Credit Suisse.

The Nikkei compensated for some of the losses to close down 0.8 percent at 27,010.61 points, after falling to 26,633.92 points, the lowest level since January 20.

Credit Suisse said earlier on Thursday that it was taking “decisive measures” to boost liquidity by activating an option to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.

The banking sector index trimmed its losses, but closed down 3.26 percent. The biggest losers were Sumitomo Mitsui Trust Holdings, down 6.27 percent, and Japan Post Bank, down 5.2 percent.

The broader Topix index fell 1.17 percent to 1937.10 points.