North American markets appear headed to lower territory on Wednesday as investors anxiously await the U.S. Senate vote on a new version of theUS$700-billion bailout bill later in the day.

In an effort to increase the likelihood of the bill’s passage, the U.S. Senate and the Bush administration are working on changes that would raise the level of Americans’ bank deposits guaranteed by the government as well as make changes to the mark-to-market accounting rule that many cite as the source of the financial system’s volatility.

If the Senate were to approve the bill, it would then go back to the House of Representatives on Thursday or Friday for another vote. The bill was voted down at that level on Monday by the slimmest of margins.

Meanwhile, the financial crisis in the U.S. continues to affect jobs as ADP Employer Services said U.S. employers cut 8,000 jobs in September, fewer than expected, but the August number was revised even lower to show job losses.

Investors will also be paying attention to the Institute for Supply Management’s manufacturing index, which is set for release at 10 a.m. Economists expect a reading of 49.5 for September, a drop from 49.9 in August. This continues to be just below the 50 mark that denotes economic expansion.

Markets in Asia bounced back on Wednesday, however, amid hopes that the financial bailout package will finally be passed this week. Japan’s Nikkei 225 index gained 108.40 points, or 0.96%, to close at 11,368.26. Taiwan’s stock market recovered from its drop on Tuesday to close up 0.8%. South Korea’s Kospi lost its earlier gains and fell 0.6%. Australian stocks also rallied, with the benchmark S&P/ASX-200 index jumping 4.2%.

On Tuesday, Canadian stocks bounced back with a hefty gain of more than 450 points following their biggest drop in almost eight years on Monday. The S&P/TSX composite index soared 467.83 points, or 4.15%, to close at 11,752.90.

Junior companies enjoyed gains as well on Tuesday, helping the S&P/TSX Venture composite index rise 32.97 points, or 2.39%, to close at 1,415.00.

Stocks south of the border also moved higher on Tuesday as investors hunted for bargains following Monday’s crash. The Dow Jones industrial average gained 485.21 points, or 4.7%, to 10,850.66.

The S&P 500 index rose 58.32 points, or 5.3%, to close at 1,164.74, while the Nasdaq composite index climbed 98.6 points, or 5%, to finish at 2,082.33.