(RTTNews) - The stock markets across the Asia-Pacific region closed mostly lower Monday on worries about the broader financial sector and the global economy, shrugging off Friday’s rally on Wall Street after U.S. President-elect Barack Obama selected New York Federal Reserve president Timothy Geithner as his nominee for Treasury Secretary. However, the Asian markets pared some of their losses after the U.S. government announced a plan to bailout Citigroup. Oil prices fell in late Asian trading on speculation that further production cuts by the OPEC will not be enough to prevent accumulation of supplies. The financial markets in Japan remained closed on account of a public holiday.

In the U.S., the government announced a US$32 billion plan late Sunday to rescue Citigroup, whose stock plunged more than 60% in the past week to a 16-year low. The plan also envisages guarantees for up to $306 billion of Citi’s troubled assets and control of executive bonuses. In return for the cash and guarantees, the government will get US$27 billion of preferred shares paying an 8% dividend.

At 3:53 a.m. ET, oil was quoted at $49.12 a barrel, down 81 cents, after the contract for January delivery closed up 51 cents at $49.93 a barrel on Friday.

In currency trading, the South Korean won fell to a 10-year low against the greenback, finishing the domestic session at 1,513.0 dollar. The Australian dollar closed firmer at US$0.6283-0.6291 and the kiwi strengthened to US$0.5320 from US$0.5288 late Friday.

The South Korean stock market closed a volatile trading session sharply lower, led by automakers, builders and some banks, despite news that the U.S. government would bailout Citigroup. The Korea Composite Stock Price Index or KOSPI closed down 33.6 points or 3.4% at 970.1, off the day’s high of 1,014.5. The key index fell below the 1,000-point mark again following a 5.8% surge on Friday.

In economic news, a report released Monday by the National Statistical Office showed that South Korean companies’ spending on research and development activities rose by 14% to 24 trillion won in 2007 from 21 trillion won a year earlier.