Washington - A massive government rescue of the US financial system failed in Congress amid both doubts that Wall Street's dire straits would affect the lives of ordinary Americans, and outrage in any case that taxpayers should bail out corporate titans.

Government officials and congressional leaders from both parties warned that, however distasteful, it would take an unprecedented government intervention in the financial sector to keep the US economy afloat.

Sydney - Australian stocks sli

Tokyo - The Tokyo stock market fell sharply in early trading

Washington  - US stocks plunged and the Standard & Poor's 500 index tumbled the most on Monday since the 1987 crash after the US House of Representatives rejected the biggest government intervention into capital markets since the Great Depression.

The hotly debated 700-billion-dollar rescue plan, which was intended to thaw out the frozen credit flow, failed in a 228-205 vote in the House. US President George W Bush has warned the country faces a long and painful recession without the plan.

Sao Paulo  - For the first time in close to a decade, the Brazilian stock exchange in Sao Paulo had to suspend its activities for half an hour Monday, after its Bovespa index crashed 10.6 per cent.

The drop happened at 2:49 pm (1749 GMT), following news of the apparent rejection by the US House of Representatives of the 700- billion- dollar bailout plan devised by the White House for the US economy.

Trading resumed, but could be closed down again , most likely for an hour, if the slide reaches 15 per cent.

Washington  - US stocks plunged more than 5 per cent Monday after the US House of Representatives rejected a hotly debated 700- billion-dollar rescue plan for the US financial system.

Stocks were already sliding on the news of the collapse of the country's fourth-largest bank, Wachovia Corp, and banking giant Citigroup's intervention to buy up the bulk of its operations.

But investor uncertainty increased after the early afternoon vote in the House, which voted 228-205 against the bill. Republicans led the opposition, voting by 2-1.