Asian stocks fall despite Senate rescue plan vote

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(Agencies)
Updated: 2008-10-02 17:11

TOKYO -- Asian stock markets retreated Thursday as broader concerns about a global economic slowdown outweighed any relief over the US Senate's passage of the bailout package to rescue the US financial system.

Traders closely monitor the ongoing trading at the Philippines Stock Exchange Thursday, Oct. 2, 2008 in Manila's financial district of Makati. The market jumped 43.2 points, or 1.7 percent, to 2612.89, as investors bet on US lawmakers approval of a $700-billion bailout plan. [Agencies]

Japan's benchmark Nikkei 225 stock average lost 1.1 percent at 11,242.65, while Hong Kong's Hang Seng index slipped 0.9 percent to 17,850.13.

Benchmarks in Australia, South Korea, Singapore and China's Taiwan Province were also in negative territory.

In Washington Wednesday, the Senate approved a revised rescue bill with tax breaks and other sweeteners by a vote of 74-25. The House of Representatives votes on the plan Friday.

But even if the package is approved, investors are skeptical about the bailout's ultimate impact on a faltering global economy, analysts said.

"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."

Japanese automakers took a big hit after the industry reported dismal September sales figures in the US -- their key export market.

US auto sales dropped below 1 million last month for the first time in more than 15 years as some consumers struggled to get financing and others were frightened away from showrooms by bank failures and turmoil on Wall Street.

Shares of Toyota Motor Corp. fell 3.8 percent after posting a 32 percent drop in US sales. Nissan Motor Co., who reported a 37 percent plunge in sales, shed 3.9 percent, while Honda Motor Co. slumped 4.5 percent after sales declined 24 percent.

On Wednesday, the Dow Jones industrial average dipped 0.2 percent to 10,831.07. Europe's stock markets were mixed Wednesday, while Latin American shares edged higher.

Markets in China, Malaysia and Indonesia were closed Thursday due to national holidays.