Market may track weak Asian stocks

The market may edge lower tracking weakness in Asian stocks as a proposed $700 billion bailout deal for the US financial sector stalled in Washington. The market sentiment has been hit by a sustained selling by foreign institutional investors.

Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 0.6% to 2.4%.

The US Congress struggled to find agreement on modifying the Bush proposal to attack the housing market crisis. The Bush administration, last week, proposed a $700 billion financial rescue package, aimed at staving off the collapse of the US financial system. Meanwhile, a group of conservative Republican lawmakers proposed an alternative mortgage insurance plan.