Asian markets see-sawed in volatile trade Tuesday to end mixed as financial counters rebounded on news that Citigroup will receive a large cash infusion from the investment arm of the Abu Dhabi government. The news pushed the Japanese and South Korean markets back into the black after spending most of the session in negative territory.
Late in the morning, Citigroup announced it agreed to sell $7.5 billion worth of Equity Units, to be converted into common shares, to the Abu Dhabi Investment Authority. Citi said ADIA's ownership in its common shares would total no more than 4.9 percent of all Citi's shares outstanding.
The U.S. dollar jumped 1 percent against the yen, and U.S. Treasuries extended losses after the deal was announced. The dollar rose to 108.45 yen, pulling away from a 2 1/2-year low hit on Monday as the sale is expected to offer a shot of funds into Citi, which has been one of the hardest hit banks from subprime mortgage defaults and the resulting credit crunch.