Asia markets were mixed during early trade Monday after the U.S. government announced plans to prop up troubled mortgage financiers Fannie Mae and Freddie Mac.
Japan's Nikkei 225 index rose more than 1.1 percent to 13,185.90 points. China and South Korean benchmarks also gained. Hong Kong, Australian and Singapore markets lost ground.
The mixed session came after a Sunday announcement that the U.S. Federal Reserve had granted its New York branch authority to lend to the two mortgage giants "should such lending prove necessary." The measure allows Fannie Mae and Freddie Mac to borrow from the central bank at 2.25 percent _ the same rate given to commercial banks and big Wall Street firms _ should they need short-term funding.
The Fed said the step would help the two firms "promote the availability of home mortgage credit during a period of stress in financial markets."
The move may have helped comfort many investors after Friday's failure of IndyMac Bancorp Inc., one of the largest U.S. bank failures in decades, analyst said.
"The market isn't totally confident the rebound is in full force," said Francis Lun, general manager of Fulbright Securities Ltd. "There's some selective buying, but it's not a rally."
Japan's market was helped by buying in financials on the Fed's plan. Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. both gained.
In Hong Kong, the blue-chip Hang Seng Index gave up early gains to drop more than 1.2 percent to 21,915.68. Developers and export companies were among losers.
Mainland China's Shanghai Composite index rose 0.5 percent to 2,872 points.
In currency dealings, the U.S. dollar weakened against the yen to 106.43.
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