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![Obama unveiled his economic team on Sunday [AFP]](http://mwcnews.net/images/stories/Personalities/1/2/3/4/5/6/7/8/9/Obama-e-team.jpg "Obama unveiled his economic team on Sunday [AFP]") | | Obama unveiled his economic team on Sunday [AFP] |
Stock markets have soared after Barack Obama, the US president-elect, unveiled his economic team and the US government announced it was bailing out troubled banking giant Citigroup.
In Asia on Tuesday, Japan's benchmark Nikkei and Hong Kong's Hang Seng were each up by around three per cent. Most other Asian markets were also higher following a strong performance on Wall Street overnight, with the Dow Jones industrial index closing up by five per cent up on Monday, signalling their approval of Obama's first move in tackling the country's economic woes. Obama nominated Timothy Geithner, the New York Federal Reserve Bank chief, as the next treasury secretary in Chicago on Monday. Lawrence Summers, a former treasury secretary during Bill Clinton's presidency, was named director of the National Economic Council and Christina Romer, an economist at the University of California at Berkeley, was named head of the White House Council of Economic Advisers. Obama also named Melody Barnes, a former policy adviser to his election campaign, to serve as director of the Domestic Policy Council, which co-ordinates policy-making on domestic issues.Financial markets had fallen during Obama's announcement as traders were dismayed that the president-elect did not specify the size of the stimulus package, but later rallied strongly. The markets also appeared to welcome the bailout of Citigroup. The US treasury department announced that it was investing $20bn in Citigroup on Sunday, as one of a series of actions to help the bank, which has lost billions of dollars amid the US economic downturn. The government also said it would guarantee against losses of about $306bn in loans and securities held by the bank.
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