HONG KONG, Feb 23: Asian markets were mostly higher on Monday after reports of a US government plan to partly institutionalise Citigroup got a cautious welcome from investors concerned about the solvency of the US banking system.

The Wall Street Journal reported Sunday that the US government is in talks that could lead to it taking a 25-40 per cent stake in Citigroup.

US stocks had plunged deeper into six-year lows Friday on rumours of bank nationalisation which President Barack Obama’s administration moved to quash.

The Citigroup report helped ease uncertainties over the solvency of US banks somewhat, said Kim Seung-Han, an analyst at HI Investment and Securities.

Shanghai was up 1.96 per cent, with Singapore 2.24 per cent higher.

However Sydney fell by 1.5 per cent and Tokyo fell 0.54 per cent, approaching a four month low on news of Japan’s largest bankruptcy this year.Corporate money-lender SFCG went under with debts of more than $3.6 billion , spooking investors.

TOKYO: Down 0.54 per cent. The benchmark Nikkei-225 index fell 40.22 points to 7,376.16.

The collapse of SFCG triggered selling of financial issues including consumer lenders. Leasing and financial services firm Orix plunged 13 per cent to 2,060 yen.

Among financials, Mizuho Financial lost 1.1 per cent to 186 yen and Mitsubishi UFJ Financial slipped 0.5 per cent to 427 yen.

Honda Motor tumbled 3.8 per cent to 2,160 yen as it announced that company president Takeo Fukui would be replaced by senior managing director Takanobu Ito.

HONG KONG: Up 3.8 per cent. The benchmark Hang Seng Index closed up 475.93 points at 13,175.10.

Dealers expected the gains to be short-lived because of continuing concerns about the global economic downturn.

China Mobile, the world’s largest mobile operator by subscribers, led blue-chips on bargain-hunting after falling 4.6 per cent in the last two sessions. It rose 5.1 per cent to $71.65 .

Hong Kong-listed China Construction Bank rose 5.3 per cent to $3.97 and China Life Insurance gained 5.2 per cent to 23.20.

Chip maker China Resources Microelectronics jumped 60 per cent to $0.265 on resuming trade.

SYDNEY: Down 1.5 per cent. The benchmark S&P/ASX200 fell 51.2 points to 3,351.2.We were down around 80 points at one stage but there was a Wall Street Journal report on Citigroup -- the market has rallied on thatsaid ABN Amro Morgans private client adviser Trent Muller.

Rio Tinto lost 6.8 per cent to 46.87. Rival BHP Billiton traded ex-dividend and was down 3.93 per cent at 29.31.

SINGAPORE: Up 2.24 per cent. The blue-chip Straits Times Index gained 35.75 points to 1,630.69.

People are taking a positive view of the Citigroup news as it’s not an outright nationalisation but should stabilise the bank,” said a trader at a local brokerage.

KUALA LUMPUR: Down 0.2 per cent. The Kuala Lumpur Composite Index lost 1.88 points to 887.83.

JAKARTA: Up 1.2 per cent. The Jakarta Composite Index rose 15.49 points to 1,312.44. Heavyweight Telkom climbed 4.0 per cent to 6,500 rupiah, rival Indosat gained 2.9 per cent to 4,475 while Bank Central Asia added 2.0 per cent to 2,500.

MUMBAI: Market closed for public holiday

WELLINGTON: Down 1.49 per cent. The benchmark NZX-50 index slipped 38.39 points to 2,538.286.

Fisher & Paykel Appliances, which last week announced it expected its net profit to fall by as much as 54 per cent, fell another four cents to $0.55 .

Resin manufacturer Nuplex, which started last week at $2.47 before announcing it was talking with its banks about its debt cover, fell another 20 cents to 1.25.—AFP