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The US expanded its auto industry bailout and loaned additional funds to GM and GMAC. Japan may launch a $110 billion scheme to buy bad loans from banks to ease the corporate credit crunch. Stocks in Japan finished higher on the last day of 2008 but the Nikkei index fell 42% for the year, marking its worst annual decline. Plans for a budget airline joint venture between Tiger Airways and Incheon, South Korea were scrapped due to the worsening global economy and regulatory issues in South Korea.

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