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World markets mixed after late Wall Street rally

 A currency trader reacts in front of a screen showing the Korea Composite Stock Price Index (KOSPI) at the Korea Exchange Bank headquarters in Seoul,...
 UPDATES Hong Kong data with its closing figures; Graphic shows results of selected Asian stock markets; 1 c x 4 5/8 in; 46.5 mm x 117.475 mm
 Investors chat at a private securities company Thursday Jan. 15, 2009 in Shanghai, China. The benchmark Shanghai Composite Index closed down 0.5 perc...
 An investor looks at stock price monitor at a private securities company Thursday Jan. 15, 2009 in Shanghai, China. The benchmark Shanghai Composite ...
  Brokers talk on phone at a brokerage in Hong Kong Thursday, Jan. 15, 2009. Asian stock markets tumbled Thursday, with benchmarks in Japan and Hong K...
 Chart shows performance of stock markets around the world; 1 c x 5 1/8 in; 46.5 mm x 130.175 mm

South Korea Markets

A currency trader reacts in front of a screen showing the Korea Composite Stock Price Index (KOSPI) at the Korea Exchange Bank headquarters in Seoul,...

ASIA MARKETS 2

UPDATES Hong Kong data with its closing figures; Graphic shows results of selected Asian stock markets; 1 c x 4 5/8 in; 46.5 mm x 117.475 mm

China Markets

Investors chat at a private securities company Thursday Jan. 15, 2009 in Shanghai, China. The benchmark Shanghai Composite Index closed down 0.5 perc...

China Markets

An investor looks at stock price monitor at a private securities company Thursday Jan. 15, 2009 in Shanghai, China. The benchmark Shanghai Composite ...

CORRECTION Hong Kong World Markets

Brokers talk on phone at a brokerage in Hong Kong Thursday, Jan. 15, 2009. Asian stock markets tumbled Thursday, with benchmarks in Japan and Hong K...

WORLD STOCK

Chart shows performance of stock markets around the world; 1 c x 5 1/8 in; 46.5 mm x 130.175 mm

World stock markets ended mixed Thursday as renewed concerns about the health of the global banking system were tempered by a late bust of buying on Wall Street on bets the government will again help the financial industry.
The Dow Jones industrial averaged finished up 12.35 points, or 0.15 percent, to 8,212.49 snapping a six-session losing streak. It was down 205 points during the session and briefly slipped below the 8,000 mark before mounting the late-session rally.
After the market's close, a divided Senate approved President-elect Barack Obama's request for $350 billion in unspent financial bailout funds.
Earlier, financial stocks were hard-hit as investors fretted that the money given to banks has done little to repair their balance sheets. Bank of America fell 18 percent and Citigroup Inc. lost 15 percent.
In Europe, the FTSE 100 index of leading British shares closed down 59.53 points, or 1.4 percent, at 4,121.11, while Germany's DAX fell 85.62 points, or 1.9 percent, at 4,336.73. France's CAC-40 declined 56.12 points, or 1.8 percent, to 2,994.88.
"The banks need more capital now and until that happens things are not going to improve," said David Buik of BGC Partners in London.
Concerns about Bank of America's funding difficulties emerged with the news that the U.S. government is considering a fresh multibillion-dollar aid package to help the bank absorb losses at Merrill Lynch, according to a person with knowledge of the discussions, who spoke to the Associated Press on condition of anonymity because of the sensitive nature of the discussions.
The person said the new aid package could be modeled along the lines of the financial lifeline that was thrown to Citigroup in November.
Citigroup itself is expected to unveil restructuring plans alongside another multi-billion dollar loss for the fourth quarter Friday, a week earlier than planned.
It wasn't all bad news among the big U.S. banks though as JP Morgan Chase & Co unveiled better than expected fourth quarter earnings, helping the company's share price to post modest gains. The company said it earned $702 million, or 7 cents per share, in the October-December quarter. Analysts had expected the company to only break even.
Latin American stocks recovered from early losses, tracing the rebound on Wall Street. Brazil's Ibovespa ended up 3 percent at 39,151, Argentina's Merval added 1 percent to 1,100 and Chile's IPSA advanced 1.4 percent to 2,484.
Mexico's central bank is expected to cut its benchmark lending rate on Friday as the country's 6.5 percent annual inflation starts to slow with the cooling economy. The bank's president has suggested that economic growth could be negative in 2009. Mexico's IPC stock index ended Thursday down 0.4 percent at 20,280.
Earlier, Asia had a traumatic session, as investors responded to the previous heavy losses in Europe and Wall Street following dismal U.S. retail sales data Wednesday.
Every market in Asia suffered steep declines, with broad selling seen across industries from energy to financials to exporters. A record 16.2 percent fall in Japanese machinery orders in November from the previous month further hurt sentiment in Asia.
The Nikkei plunged 415.14 points, or 4.9 percent, to 8,023.31, while Hong Kong's Hang Seng Index fell 461.65 points, or 3.4 percent, to 13,242.96 after earlier sinking about 5 percent.
South Korea's Kospi dropped 6 percent to 1,111.34, while markets in Australia and Taiwan fell 4 percent or more. Singapore's benchmark was down 3.4 percent but Shanghai stocks were only slightly lower.
Light, sweet crude for February delivery fell 5 percent, or $1.88, to settle at $35.40 a barrel on the New York Mercantile Exchange. Prices fell as low as $33.20 Thursday and only gave up steep losses when Wall Street rebounded.
In currencies, the British pound rose to $1.4659 in late New York trading from $1.4587 late Wednesday. The euro inched up to $1.3163 from $1.3159, but earlier traded at $1.3024, its lowest point since Dec. 11. The dollar also rose to 89.68 Japanese yen from 89.13.
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AP Economics Writer Jeannine Aversa in Washington and AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.


Updated : 2021-03-09 04:05 GMT+08:00