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US vote fails to lift Asia shares | US vote fails to lift Asia shares |
(about 1 hour later) | |
Stock markets in Asia have reacted with scepticism to the approval of a revised financial rescue plan by the US Senate. | Stock markets in Asia have reacted with scepticism to the approval of a revised financial rescue plan by the US Senate. |
Japan's main Nikkei index was down 1.3% in afternoon trading in Tokyo, while Hong Kong's Hang Seng had lost 1%. | |
Analysts said concern persisted about the rescue deal's fate in Congress, amid deep fears for the US economy. | |
The revised $700bn (£380bn) package must still be approved by the House of Representatives, which rejected an earlier version on Monday. | |
"There's still a lot of distrust of this bill in the House, so it's hard to know what will happen there," Katsuhiko Kodama, senior strategist at Toyo Securities, told Reuters news agency. | "There's still a lot of distrust of this bill in the House, so it's hard to know what will happen there," Katsuhiko Kodama, senior strategist at Toyo Securities, told Reuters news agency. |
"If you look at recent indicators for the US and Japan, the economy is clearly bad," he said. "You can't expect a rebound just on the bill passing the Senate." | "If you look at recent indicators for the US and Japan, the economy is clearly bad," he said. "You can't expect a rebound just on the bill passing the Senate." |
Regional slide | Regional slide |
South Korean stocks also fell after the US Senate vote, amid signs of a continued flight to products such as US Treasury bills, which are considered a haven. | |
Australian shares fell 0.5% on Thursday after the Senate vote, and analysts there said they expected scepticism to continue until the House of Representatives also backs the rescue plan and it is seen to work. | |
Japanese Prime Minister Taro Aso said his government would cooperate with the Bank of Japan to maintain financial stability in Japan. | Japanese Prime Minister Taro Aso said his government would cooperate with the Bank of Japan to maintain financial stability in Japan. |
The Bank of Japan said it had injected one trillion yen ($9.5b) into the financial system, for the 12th straight business day. |