TOKYO - ASIAN markets rose robustly on Tuesday as investors regained some confidence on Wall Street's second straight day of day of strong gains, spurred by a US government bailout of banking giant Citigroup.

Initial reaction in the region to the Citigroup news - which broke midday Monday in Asia - was tepid, and most benchmarks had ended the day lower. But after seeing markets in Europe and the US surge overnight, Asian investors joined in the rally.

'The rescue of Citigroup does help ease concerns,' said Singapore-based investment analyst Nicole Sze of Bank Julius Baer & Co., which manages about US$300 billion (S$454.7 billion) in assets. 'Citigroup is such a crucial financial institution in the global market. The US action does fuel a return of confidence.'

In Japan, which had been on holiday Monday, the Nikkei 225 stock average soared 413.14 points, or 5.2 per cent, to 8,323.93.

Australia's benchmark S&P/ASX200 index leaped 5.8 per cent to close at 3,623.4, led by materials, energy, banks and consumer discretionary stocks.

Hong Kong's Hang Seng index rose nearly 4 per cent to 12,940.42, and the Philippines' main index jumped more than 6 per cent. Among major indices, only mainland China and Singapore were in the red.

Wall Street and European markets surged Monday on news that the US government will take a US$20 billion stake in Citigroup and guarantee hundreds of billions of dollars in risky assets. The Dow Jones industrials soared 396.97 points, or 4.93 percent, to 8,443.39 on Monday - the first two-day advance since Oct 31.

US stock index futures were mixed. Dow futures were up 4 points, or 0.1 per cent, to 8,389, while Nasdaq futures were down 5.25 points, or 0.5 per cent, to 1,141.75.

Japanese officials in Tokyo hailed Washington's move.

Economy Minister Kaoru Yosano called the plan a 'courageous decision' to save the massive global banking group, noting that the world's economy could be affected by Citigroup's fate, according to Kyodo news agency.

All three of Japan's megabanks climbed. Sumitomo Mitsui Financial Group Inc. soared 11.48 per cent, Mizuho Financial Group Inc. added 9.17 per cent, and Mitsubishi UFJ Financial Group Inc. closed up 2.85 per cent.

Wall Street's gains also drove commodity markets higher as oil prices jumped 9 per cent on Monday, though they slipped back bit in Asian trading on Tuesday. Commodity shares in Australia gained, with BHP Billiton, the world's biggest miner, surging 12.2 per cent, and rival Rio Tinto advancing 6.9 percent.

After jumping $4.57 overnight, light, sweet crude for January delivery was down $1.00 to $53.50 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.

In currencies, the dollar fell to 96.34 yen from 96.88 yen late on Monday. The euro also slid to $1.2830 from $1.2925.

In Europe Monday, Britain's FTSE 100 index jumped 9.8 per cent to 4,152.96, Germany's DAX soared 10.3 per cent to 4,554.33 and France's CAC-40 gained 10.1 per cent at 3,172.11. -- AP

HONG KONG
Hong Kong share prices closed 3.4 per cent higher on Tuesday, as financial stocks gained on Wall Street's resounding thumbs up to the US government's bailout package for Citigroup, dealers said.

The benchmark Hang Seng Index surged 420.66 points to 12,878.6. Turnover was 41.23 billion Hong Kong dollars (S$8.01 billion).

Trading for China's electrical appliances giant Gome remained suspended for the second consecutive day, following reports that its chairman Huang Guangyu was being investigated for alleged market manipulation.

DBS downgraded the stock to 'hold' from 'buy', cutting its target price to 1.13 dollars from 3.30 dollars after lowering its 2009 profit forecast by 15 per cent.

SHANGHAI
Chinese share prices closed down 0.44 per cent on Tuesday as profit taking and renewed concerns over weakening corporate earnings ate away at early gains, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, closed down 8.35 points at 1,888.72 on turnover of 45.8 billion yuan (S$10.15 billion).

The Shanghai A-share index shed 8.92 points, or 0.45 per cent, to 1,983.80 on turnover of 45.5 billion yuan, while the Shenzhen A-share index lost 1.42 points, or 0.25 per cent, to 559.30 on turnover of 19.9 billion yuan.

KUALA LUMPUR
Malaysian share prices closed 0.6 per cent higher on Tuesday on positive sentiment following a 25 basis point cut in interest rates, dealers said.

The Kuala Lumpur Composite Index rose 4.79 points to close at 860.18. There were 262 gainers, 243 losers and 227 counters traded unchanged on the Bursa Malaysia.

The FBM2BRD was at 4,264.17 down 45.23 points, and the FBMEmas was at 5,638.77 up 13.87 points.

Turnover was at 466.467 million shares valued at RM576.754 million.

TOKYO
Japan's Nikkei stock index soared 5.22 per cent by the close of trade on Tuesday after a bailout of US banking giant Citigroup sparked a strong rally on Wall Street.

The Nikkei gained 413.14 points to 8,323,93. -- AFP, BERNAMA