Sept. 8 (Bloomberg) -- The U.S. government's rescue of Fannie Mae and Freddie Mac won backing from the world's major central banks, including those in Asia where much of the mortgage companies' debt is held.

``This is positive,'' People's Bank of China Governor Zhou Xiaochuan told reporters today in Basel, Switzerland, at a meeting at the Bank for International Settlements. Bank of Japan Governor Masaaki Shirakawa said he expects the takeover to ``stabilize'' U.S. and global financial markets.

U.S. Treasury Secretary Henry Paulson yesterday seized control of biggest the U.S. mortgage lenders two months after warning that their creditworthiness needed a U.S. government lifeline to help restore investor confidence. Stocks rallied around the world today on speculation the action will help financial companies weather the subprime-mortgage crisis.

``We noted that it was a very important decision and it was welcomed, taking into account the circumstances,'' European Central Bank President Jean-Claude Trichet said in Basel after chairing the meeting of the Group of 10 central bankers.

Much of Fannie Mae and Freddie Mac's debt is held abroad with foreign investors, including central banks and governments, buying about $150 billion of such agencies' debt in the first six months of this year. In a sign of growing concern, investors in Japan and China, the biggest foreign holders of such debt, scaled back their investments in June.

Mortgage Defaults

Paulson acted after the biggest surge in mortgage defaults in at least three decades threatened to bring down the companies that compose almost half the U.S. home-loan market. He placed the two firms in a government-operated conservatorship, ousted their chief executives and eliminated their dividends.

``It should have a useful tranquilizing effect on the very stressful market,'' Joseph Yam, chief executive of the Hong Kong Monetary Authority, said of the plan today. ``The continued stress in the largest market in the world has serious implications for the rest of the world.''

Japanese investors slowed their demand for the agencies' debt to $770 million in June, from $4.5 billion a month earlier, according to U.S. Treasury data, released last month. China bought $9.6 billion in such debt, down from $14.9 billion in May.

`Positive' Reaction

Reserve Bank of Austria Governor Glenn Stevens said reaction to the bailout was ``likely to be positive in the near term because it's a source of uncertainty that's closer to resolution.'' Paulson was today set to brief his counterparts in the Group of Seven nations, Japanese Finance Minister Bunmei Ibuki said.

``Japan welcomes the U.S. action,'' Ibuki told reporters in Tokyo. ``It may sweep away concern about the U.S. economy and stabilize U.S. financial markets, having a positive impact on the global economy.''

Still, Polish central bank President Slawomir Skrzypek said he had ``mixed feelings'' because it may encourage investors to take on more risk in the future, knowing they will be bailed out by the government if their investments failed.

``It's between a moral hazard and the importance of those banks in the American financial system,'' Skrzypek said in Basel. ``There is still concern about the whole situation of the financial system. There are still a lot of uncertainties in this regard.''

To contact the reporters on this story: Simon Kennedy in Paris at skennedy4@bloomberg.net; Simone Meier in Basel at smeier@bloomberg.net

Last Updated: September 8, 2008 08:47 EDT