Asian Stocks Pare Losses to Close Mixed - TheStreet

Updated from 12:41 a.m. EDT

Stock markets in Asia closed mixed Tuesday, paring earlier losses, following the news Monday that lawmakers in the U.S. failed to approve a $700 billion rescue plan for financial institutions.

Japan's Nikkei 225 Stock Average fell 483.75 points, or 4.1%, to 11,259.86. Banking and financial stocks took the brunt of the losses, leading to the Nikkei's lowest close since June 2005. The Nikkei was down almost 5% earlier in the trading session.

The Hang Seng index in Hong Kong closed in positive territory, up almost 0.8%, after falling about 5% soon after the market opened. Markets in Australia, New Zealand, and South Korea closed lower.

Stocks in Europe also were mixed. The FTSE 100 index in London was trading higher by 0.3%, while the DAX in Frankfurt was down 0.75%.

Futures on the

S&P 500

in the U.S. rose Tuesday by 31.30 points to 1150.10, and were 41.38 points above fair value.

Nasdaq

futures rose 32 points to 1544, and were 38.66 points above fair value.

Stocks on Wall Street plummeted Monday after the House of Representatives voted to reject the Treasury Department's proposed aid package for the financial sector.

The surprise vote tally stunned traders on Wall Street. The

Dow Jones Industrial Average

plummeted 777.68 points, or 7%, to 10,365.45. The

S&P 500

sank 106.59 points, or 8.8%, to 1106.42. The

Nasdaq

lost 199.61 points, or 9.1%, to 1983.73.

The $700 billion proposal, formally presented last week by

Treasury

Secretary Henry Paulson, failed to garner sufficient votes to make it through the House. The package would have set up a facility to use government money to buy troubled assets from financial firms. The controversial piece of legislation had earlier been expected to make it through.

Crude oil fell $1.50 a barrel Tuesday to $94.87 in electronic trading on the

New York Mercantile Exchange

. Gold was trading higher.