That vote is important, but approval from the second US chamber, the House of Representatives will again be vital.
The Stanard & Poor's 500 finished down half a per cent after being off 2.2% at one stage as a slew of poor reports confirmed US manufacturing was in the doldrums and demand was slipping. The Dow was down 0.2%.
The rise in Asia was in thin trading: the MSCI Asian Pacific Index rose 1.8%, with financial shares driving much of the advance.
Among the major markets in Asia, only Australia and Japan were open yesterday.
European markets were up less than 1% on worries about banks and financials. The Dow Jones Stoxx 600 Index rose 0.7% and 11 of the 18 major markets in Europe finished higher. London's FTSE 100 rose 1.2% as banks bounced, France's CAC 40 added 0.6% but Germany's DAX fell 0.4% with investors there wary about their financial stocks.
US stock futures were weaker ahead of the vote after being off 1% in pre-trading on fears manufacturing would slumped last month.
Those fears were confirmed when an index of manufacturing performance showed the country's huge manufacturing sector was now running at levels not seen since the 2001 recession.
Exports were down in a major concern. Economists said it looks as though the economy has slumped into recession.
US car sales slumped sharply in September, worsening after the collapse of Lehman Brothers, the bailout of AIG and the forced sale of Merrill Lynch. Ford, Chrysler and Toyota all reported sales down by more than 30%, Honda, Hyundai and Nissan were off by more than 20%, GM, 16%.
And investor Warren Buffett took a $US3 billion stake in the wobbly industrial and financial giant, General Electric. GE is looking to raise $US12 billion in fresh capital.
Oil fell to around $US98.50 a barrel in late trading in New York and the Australian dollar traded under 79 US cents at 78.85 cents.
The Australian market rose at the end with to the BHP Billiton bid for Rio Tinto was given the local OK by competition authorities.
That all but recovered Tuesday's 4.3% loss. The overnight futures trading had our market up by just over half a per cent, but that is irrelevant with the Senate vote happening after 9.30 am and probably in our trading time.
Sharp rises in the shares of BHP and Rio sent the market higher in late trading, reversing the sharp falls seen in late trading Tuesday. But BHP was sold off by 4% in London.
Tokyo's Nikkei was up 1%, but many markets in Asia were closed including China, Hong Kong, Indonesia, the Philippines, Malaysia and Singapore. Taiwan and South Korea were trading, but tended lower during the day.
The ASX 200 Index gained 4.2%, or 194.1 points, to the day's high of 4794.6. The All Ords rose by a similar percentage.
The ACCC said it will not oppose BHP Billiton's proposed takeover of rival Rio Tinto because it is unlikely to lessen competition. Mining giant BHP Billiton soared 5.7%, or $1.75, to $32.75, while rival Rio Tinto jumped 12%, or $10.50, to $95.00.
Shares in the third iron ore miner, Fortescue climbed 14%, or 65 cents, to $5.31.
The banks were among the improvers with Westpac shares rising 8.2%, or $1.77, to $23.25 (There had been concern about the merger with St George); the Commonwealth Bank was up 5.3%, or $2.24, at $44.86 and the ANZ rising 2.9%, or 55 cents, to $19.30.
NAB shares climbed 5.9%, or $1.44, to $25.70 and Macquarie group was up $1.25, or 3.4%, to $38.25.
Agribusiness AWB said that all three class actions against the company in the US arising from the United Nations oil-for-food kickbacks scandal had now been dismissed.
Explosives, paint and chemicals maker Orica says its plan to demerge its consumer products business is on track to proceed and the shares lifted $1.20, or 5.7%, to $22.15.
