Bush sets meeting to discuss bailout

Congress looked close to reaching a deal to approve a $700 billion plan to bail out the US financial system and President George W. Bush called an emergency meeting yesterday to hammer out details.

The move toward a deal will likely calm US markets, which remained on tenterhooks on Wednesday as negotiations dragged on. Investors sought cash and safe-haven assets, briefly sending short-term interest rates below zero. Experts said banks were hoarding cash, fearful that if they loaned money to other banks they might not get repaid.

Most Asian stock markets were weaker and the US dollar dipped against major currencies yesterday on lingering worries about the timing and scale of rescue plan and fears of the financial contagion deepening.