World markets mixed after Wall Street rallyWorld markets mixed after Wall Street rally

(CNN) -- World markets were mixed Tuesday following rallies the previous day on European and U.S. exchanges in the wake of the U.S. government bailout of banking giant Citigroup

In mid-morning trading, the major European indices in London and Paris were hovering above the break-even point, while Frankfurt was down by around 0.75 percent.

Most major Asia-Pacific markets rose Tuesday, with Japanese and Australian markets up more than 5 percent.

Tokyo's Nikkei index finished the trading day up 413 points, or 5.1 percent, while Australia's All Ordinaries index closed up 5.5 percent with a gain of nearly 187 points and Seoul's Kospi closed up nearly 1.4 percent.

Elsewhere, Hong Kong's Hang Seng index closed up 3 percent, while the Straits Times index in Singapore was up about 2 percent in late trading.

The increases followed Monday's broad rally on American markets, which was fueled by a massive U.S. rescue package for shaky financial giant Citigroup and President-elect Barack Obama's announcement of the economic team for his incoming administration.

The benchmark Dow Jones Industrial Average rose 397 points, or 4.9 percent, while the S&P 500 gained 6.4 percent and the Nasdaq composite gained more than 6 percent.

Stephen Leeb, president at Leeb Capital Management, said concerns about the global financial crisis and the weakness of institutions like Citigroup have kept "a massive amount of liquidity on the sidelines," and announcements like Obama's pick of New York Federal Reserve chief Timothy Geithner for treasury secretary helped ease those fears.

"Geithner assures a smooth transition between the Bush Administration and that of Obama, because he's already co-managing what's happening now," Leeb said.