HONG KONG, Nov 26: News of another massive rescue package in the United States for the battered banking sector received a mixed reception on Asian markets, with investors remaining cautious as the world economy slows.

The Federal Reserve announced Tuesday an $800 billion deal to buy up mortgage and asset-backed securities from struggling banks in a bid to unfreeze the credit markets amid the worst financial crisis in decades.

But the plan received a lukewarm reception.

Shanghai edged up 0.49 per cent and could rally on Thursday after the central bank announced a 1.08 percentage point cut in interest rates to boost growth as well as announcing a reduction in the amount of money banks must hold in reserve. Taipei was up 0.12 per cent.

The Dow Jones was only 0.44 percent higher overnight.

The massive injection plan by the Fed is something that should have been done by the government in the first place, said Seiichi Suzuki, a strategist at Tokai Tokyo Securities.

The Japanese market was also hit by a stronger yen, with the dollar easing to 94.97 yen in Tokyo afternoon trade, down from 95.24 in New York late Tuesday. The euro dropped to 123.66 yen from 124.45.

TOKYO: Japanese share prices retreated 1.33 per cent.

The Nikkei lost 110.71 points, or 1.33 per cent, to 8,213.33. The broader Topix index of all first section issues dropped 14.36 points, or 1.73 per cent, to 817.22.

Toyota shares sank 4.6 percent to 2,985 yen.

Sanyo Electric shares slipped 3.8 per cent to 150 yen after major shareholder Goldman Sachs said it had broken off talks about selling its stake in Sanyo to Panasonic Corp. because its offer was too low.

HONG KONG: Prices closed 3.8 per cent higher.

The benchmark Hang Seng Index was up 490.85 points to 13,369.45. Turnover was 41.68 billion Hong Kong dollars (5.34 billion US).

MUMBAI: Indian shares rose 3.81 per cent. The benchmark 30-share Sensex rose 331.19 points to 9,026.72, following two days of losses.—AFP