Asian markets decline as investor consider US bank plan (AP) (26-02-2009)

HONG KONG (AP) -- Asian stock markets were mostly lower Thursday, with benchmarks in Hong Kong and South Korea off about 1 percent, as investors questioned whether a U.S. plan to test banks' health would finally stabilize the ailing financial system.

A lack of specifics about the government's rescue program had weighed on markets in recent weeks. While modestly encouraging, details released overnight weren't enough to persuaded investors the plan is a surefire solution to U.S. financial problems at the core of the global slump.

Asia markets, mostly higher in the morning, started to give up their gains by the afternoon, showing the uncertainty still clouding the outlook for equities markets.

Japan's Nikkei 225 stock average dipped 0.3 percent afternoon trading to 7,436.89 after being up modestly. Hong Kong's Hang Seng lost 0.8 percent to 12,900.74 and South Korea's Kospi was traded lower by 1.3 percent to 1,053.57.

Stock measures in India, Shanghai and Singapore also traded lower, while markets in Australia and Taiwan rose.

In currencies, the dollar strengthened to 97.84 yen compared to 97.42 yen. Early last week, the dollar was trading in low 90 yen range. The euro edged up to $1.2729 from $1.2722.

Light, sweet crude oil for April delivery rose 9 cents to $42.59 a barrel in Asian trade, as a lower-than-expected U.S. crude inventory increase sparked investor optimism that the collapse in demand may be slowing. The contract gained $2.54 overnight to settle at $42.50.

Source: AP