Asian markets quieter in trading

Asian stock markets have opened quietly following two days of dramatic rises.

In Japan, a day after its biggest-ever one-day gain, the Nikkei index opened down fractionally, as did shares in Australia, with Taiwan dropping 1.26%.

In New York on Tuesday, Wall Street was also slightly down at the close of trading as investors took some profits after Monday's big rises in stocks.


Earlier US President Bush announced a $250bn (£143bn) plan to purchase stakes in banks to try to restore confidence.

However, fears the global economy may not be able to avoid a recession pushed the Dow Jones index 0.82% as investors turned their attention to the worsening economic outlook.

Recession fears have seen profit-taking on Wall Street


While bank shares were largely higher because of the US Treasury rescue plan, technology stocks fell.

Traders say Wall Street is expected to be nervous in the weeks ahead because of economic worries.

Recession fears

President George W Bush said the move would help to return stability to the US banking sector and ultimately help preserve free markets.

US federal authorities will also temporarily insure most new debt issued by US banks and expand deposit insurance.

Among financial stocks, Morgan Stanley rose 21.2%, Bank of America was up 16.4%, Citigroup soared 18.2% and Wells Fargo rose 10.2%

Investors have welcomed the US government's action but fears of a recession rather than a financial meltdown have now come to dominate thinking.


Rescue plans

Earlier stock markets worldwide had risen, as investors bet that state action to strengthen the banking system would ease the credit crisis.

In Europe, Germany's Dax ended up 2.7%, while the UK's FTSE added 3.2%.

The US move follows similar steps taken by the UK and other European governments.

BBC business editor Robert Peston said the US and eurozone plans were variations on the template launched a week ago by the UK government despite reservations expressed by other leaders.

"If HM Treasury were the corporate finance department of one of those battered investment banks that are now being rescued, it would be collecting a very fat fee," he said.