HONG KONG, Sept 29: Asian stocks tumbled on Monday despite a deal being reached in Washington on a massive bailout plan for the US finance market and as the global credit crisis spread to Europe.

Lawmakers in the US finally brokered a deal Sunday to make available $700 billion to save the world’s biggest economy from the worst slump since the 1930s depression.

The plan, which was only agreed after days of bitter wrangling between Democrats and Republicans, was initially welcomed in Asia but that soon turned to concern.

In a bid to boost liquidity the Japanese central bank pumped 1.9 trillion yen ($18 billion) into the market, the ninth consecutive business day it has flooded the system with money. The Australian central bank also poured money into its market.

There were also concerns over the European finance sector after Belgian-Dutch banking and insurance group Fortis was forced to seek a government bailout, while Britain announced it would nationalise troubled mortgage lender Bradford and Bingley.

Meanwhile German banks extended a life-saving multi-billion-euro credit line to Hypo Real Estate (HRE), and small Danish bank Bonusbanken was rescued by Vestjysk bank.

In late afternoon trade Mumbai was 5.33 per cent down, at a 16-month low.

TOKYO: Japanese shares ended down 1.26 per cent, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 149.55 points at 11,743.61. The broader Topix index of all first-section shares dropped 20.02 points or 1.74 per cent to 1,127.87.

Carmakers were hit by worries about slowing demand. Toyota Motor lost 3.2 per cent to 4,590 yen after Japan’s top automaker said it was curbing production in the once-booming Chinese market.

Isuzu Motors plunged 11 per cent to 291 yen.

Mitsui O.S.K. Lines slid 6.0 per cent to 889 yen and Kawasaki Kisen dropped 6.3 per cent to 628 yen.

HONG KONG: Shares closed down 4.3 per cent as banking giant HSBC bumped up its mortgage rate, dealers said.

The benchmark Hang Seng Index closed down 801.41 points at 17,880.68.

Turnover remained light at 54.97 billion Hong Kong dollars 7.05).

HSBC increased its rate on new mortgages by 50 basis points from Monday as interbank lending rates have surged in recent days amid ongoing liquidity concerns.

Dealers said they expect the local market’s volatility to continue in the near term as the global financial crisis is showing no clear signs of improvement.

SYDNEY: Australian share prices dropped 2.0 per cent, dealers said.

The benchmark S&P/ASX 200 slipped 97.4 points to close at 4,807.4, while the broader All Ordinaries was down 95.4 points at 4,839.2.

Turnover was a light 974.5 million shares worth 3.43 billion Australian dollars (2.82 billion US), with 356 stocks closing up, 617 down and 299 unchanged.

But dealers said losses in the resources sector weighed on the market as investors waited to hear whether the US rescue package would be passed.

BHP Billiton lost 4.5 per cent to $34.24 while rival and takeover target Rio Tinto dropped 5.5 per cent to 95.50.

ANZ fell 1.1 per cent to 18.79, Commonwealth Bank lost 1.3 per cent to 43.87, National Australia Bank shed 0.4 per cent to 25.69 and Westpac was down 3.5 per cent at 23.15.

SINGAPORE: Shares closed 2.08 per cent lower, dealers said.

The blue-chip Straits Times Index fell 50.12 points to 2,361.34. Volume totalled one million shares worth 1.12 billion Singapore dollars (794 million US) with 144 rising issues, 359 losers and 856 even.

Singapore Airlines eased 14 cents to 14.24 and Singapore Telecommunications gave up seven cents to 3.14.

KUALA LUMPUR: Malaysian share prices eased 0.1 per cent, dealers said.

The Kuala Lumpur Composite Index dropped 0.81 points to close at 1,019.72.

Gamuda lost 3.6 per cent to 2.17 ringgit, Nestle was down 4.4 per cent at 27.00 ringgit, and Malaysia Airlines lost 1.7 per cent at 3.44 ringgit.

JAKARTA: Indonesian shares closed 0.7 per cent lower, dealers said.

The Jakarta Composite Index slipped to 1,832.50.

Indonesian markets will be closed for the rest of week for Eid ul-Fitr, the end of the Ramadan holy month.

WELLINGTON: New Zealand share prices closed barely changed, dealers said.

The benchmark NZX-50 index rose 0.95 points to 3,188.54.

A takeover bid for Steel & Tube from its 50.27 per cent Australian owner OneSteel saw its share price rise 80 cents to $3.80, compared with the 3.80 dollar a share bid price.

Telecom rose five cents to $2.78. Fletcher Building slipped 30 cents to $6.91 and Contact Energy was down 12 cents at 8.29.

MUMBAI: Indian shares were 5.33 per cent in late afternoon trade, dealers said.

The BSE benchmark 30-share Sensex index was trading down 699.34 points at 12,402.84 in late afternoon trade, its lowest since early March 2007.—AFP