Mixed market reaction to US bail-out agreement

Asian stocks were mixed today after a $700bn (€484bn) rescue plan of the financial industry – the biggest US government bailout in history – appeared to get the go-ahead from Congressional leaders in Washington.

The US plan, which still needs approval in both houses of Congress, would give the administration broad power to use taxpayers’ money to purchase billions of home mortgage-related assets held by cash-starved financial firms. But it includes stronger spending controls at the insistence of lawmakers.

Tokyo’s benchmark Nikkei 225 index was up 0.46% at 11,947.65, but gains were limited by doubts over the effectiveness of the plan and lingering concerns about a global economic slowdown.

Hong Kong’s Hang Seng index fell 2% while South Korea’s Kospi lost 0.8%. Benchmarks in Australia and Singapore were also down, while indices in the Philippines and New Zealand were up.

Exchanges in mainland China were closed for a national holiday, and Taiwan markets were shut down due to a typhoon.