Updated from 1:36 a.m. EST

Asian stock markets finished mostly lower Monday after the U.S. government unveiled a plan to rescue banking giant

Citigroup

(C) - Get Report

.

The Hang Seng index in Hong Kong fell 1.6%, the Kospi index in South Korea declined 3.4%, and China's Shanghai composite index closed lower by 3.7%. The S&P/ASX 200 index in Australia rose 0.3%.

Markets in Japan were closed for a national holiday.

Under the plan unveiled late Sunday in the U.S., Washington would take a $20 billion stake in Citigroup and guarantee hundreds of billions of dollars in risky assets -- moves aimed at shoring up a huge financial institution whose collapse would destabilize further the global financial system and U.S. economy.

Financial stocks in the region fell on jitters over Citigroup.

Top European bank

HSBC

(HBC)

declined, as did

Commonwealth Bank of Australia

.

Stocks in Europe were trading higher. The FTSE 100 index in London rose 2.3%, while the DAX in Frankfurt rose 1.6%.

Trading lower was

Standard Chartered

, Britain's third largest bank, as it said Monday it plans to raise 1.8 billion pounds ($2.7 billion) in a rights offer to shore up its balance sheet amid the economic downturn. Shares of

Anheuser-Busch InBev

declined after the brewer said it plans to raise 6.36 billion euros ($8.01 billion) in a rights offering.

Stock futures in the U.S. were trading to the downside.

S&P 500

futures fell 7.80 points to 784.20, and were 14.63 points below fair value.

Nasdaq

futures dropped 17 points to 1074, and were 11.73 points below fair value.

On Friday, Wall Street stocks traded in a wide band before surging ahead late in the session. The rally coincided with reports that New York

Federal Reserve

leader Tim Geithner would be nominated as the next secretary of the

Treasury

.

The

Dow Jones Industrial Average

skyrocketed to close up 494.13 points, or 6.5%, at 8046.42. The S&P 500 added 47.59 points, or 6.3%, to 800.03, and the Nasdaq gained 68.23 points, or 5.2%, at 1384.35.

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