Asian markets showed mixed results after G7 crisis talks

After world leaders talk to end the current financial crisis, Asian markets saw mixed results during first day trading.

In morning trading, shares were up in Australian, Hong Kong, Singapore and South Korean markets, but they opened down in the main markets in Taiwan and Shanghai.

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Earlier this week, EU leaders announced that big bank would be allowed to declare itself bankrupt. The leaders have agreed a plan to handle the crisis.

To unfreeze credit markets, the G7 finance ministers have approved a five-point plan and similarly many other countries have announced individual rescue packages.

Australian Prime Minister Kevin Rudd announced that his government would guarantee all large bank deposits for the coming three years.

According to some analysts, this type of move would help to raise confidence as it was quite obvious when Australia’s central bank pumped $2bn to improve lending between banks.Sydney’s benchmark index was 3.2% higher at 0300GMT and similarly South Korea’s Composite Stock Price Index and Hong Kong’s Hang Seng index were also slightly up.

However, both main stock markets in Taiwan and Shanghai were 2% down during a volatile morning trading. In Japan, financial markets were closed because of a public holiday.

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