World markets mixed after Senate vote

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By Tomoko A. Hosaka ASSOCIATED PRESS

TOKYO (AP) -- World stock markets were mixed Thursday as broader concerns about a global slowdown dampened relief over the U.S. Senate's passage of the $700 billion bank rescue package.

Japan's Nikkei 225 average fell 1.9 percent to 11,154.76 and benchmarks in Australia, South Korea and Taiwan also dropped.

As the day progressed, the mood seemed to improve. Hong Kong's market, down for much of the day, managed a late-day rally, lifted by gains in insurer Ping An and expectations that China will introduce supportive market measures. The Hang Seng index rose 1.1 percent to 18,211.11.

European stocks opened higher, with Britain's FTSE 100 up 1.1 percent, and Germany's DAX gained 1.0 percent.

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Asian investors gave a tepid reaction to the Senate's approval Wednesday to a revised bailout plan aimed at stabilizing the U.S. financial system. The House of Representatives, which rejected an earlier version of the bill, will likely vote on the bill Friday.

Even if the package is approved, traders are skeptical about its ultimate impact on a faltering global economy. Cleaning up the pile of bad debts on banks' balance sheets will be a long, arduous process, and the crisis is spreading in Europe, where governments have bailed out two troubled banks, Fortis NV and Dexia.

"Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy," said Aric Au, marketing manager for institutional sales at Phillip Securities in Hong Kong. "But at this moment, nobody is sure about this. They need to have more information about the finalized plan."