World markets rise after U.S. proposes bailout plan
Stock markets in Asia rallied Monday after the U.S. government announced a $700 billion plan on the weekend to buy up the bad mortgage debt that's at the centre of the crisis.
Japan's Nikkei index rose 1.4 per cent to 12,090.59 points, while Hong Kong's Hang Seng index jumped 1.2 per cent to 19,632.20.
In China, the Shanghai Composite Index climbed 7.8 per cent with investors encouraged by efforts by China to stabilize its financial market. Markets in Australia and Taiwan also advanced strongly.
Markets in Europe rose in early trading. London's FTSE, Germany's DAX and France's CAC 40 all were edging higher at the start of the trading day.
The bailout plan would give the U.S. Treasury Board the power to buy $700 billion in bad debt linked to the collapse of the U.S. housing market in what would be a massive federal intervention to shore up the U.S. financial system.
On Saturday, U.S. President George W. Bush urged Congress to work with the White House to enact the legislation quickly.
The Bush administration spent the weekend negotiating the details of the proposal with members of Congress with the expectation that it can be passed this week.
The Democrats have said the plan should include more protections for homeowners and taxpayers and they want time to negotiate it. They have also called for more oversight of which bad loans are bought and limits on executive payouts.
Bush was expected to be in New York on Monday to attend a UN General Assembly session but was expected to receive regular briefings on the financial rescue plan.
With files from the Associated Press
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