INVESTORS remained cautious in Asian trade yesterday, with most major indexes falling despite the United States Senate giving support to a revised US$700 billion (S$1 trillion) bailout plan.

Markets were unmoved by the lawmakers agreeing to the amended deal, as traders decided to await the outcome of another vote in the House of Representatives expected today.

Said senior economist Masamichi Adachi at JPMorgan Securities in Japan: 'Even if the Bill is passed, worries remain over the global economic outlook, so financial markets are unlikely to stabilise.'

All the things that the US authorities are doing now, he added, are simply aimed at preventing a global meltdown.

'They might trigger a short rally in markets but won't offer a fundamental solution.'

Tokyo shed 1.88 per cent to end at a three-year low. Taipei dropped more than 1 per cent and Seoul slipped 1.39 per cent. Sydney eased 0.7 per cent.

But Hong Kong recorded a rise of more than 1 per cent, while Singapore was also better off, lifting by 0.2 per cent.

The Senate voted 74-25 late on Wednesday to back a revised bailout, aiming to ease the credit crunch that has shaken the world economy.

Mr James Foulsham, CMC Markets head of trading in Australia, said: 'Until we get a firmer view one way or the other, I think people are going to stay out of the market because it's too risky.'

As Investrust chief executive Hiroyuki Fukunaga told Dow Jones Newswires: 'Even if the Bill is passed by the House, the stock market will probably fall further on concerns about the real economy.' -- AFP, REUTERS