diff --git a/lib/ace/edit_session.js b/lib/ace/edit_session.js
index 98c1e940..5f77bfd8 100644
--- a/lib/ace/edit_session.js
+++ b/lib/ace/edit_session.js
@@ -948,9 +948,9 @@ var EditSession = function(text, mode) {
         this.tokenRe = mode.tokenRe;
         this.nonTokenRe = mode.nonTokenRe;
 
-        this.$options.wrapMethod.set.call(this, this.$wrapMethod);
         
         if (!$isPlaceholder) {
+            this.$options.wrapMethod.set.call(this, this.$wrapMethod);
             this.$setFolding(mode.foldingRules);
             this._emit("changeMode");
             this.bgTokenizer.start(0);
@@ -2456,10 +2456,17 @@ config.defineOptions(EditSession.prototype, "session", {
     wrapMethod: {
         // code|text|auto
         set: function(val) {
-            if (val == "auto")
-                this.$wrapAsCode = this.$mode.type != "text";
-            else
-                this.$wrapAsCode = val != "text";
+            val = val == "auto"
+                ? this.$mode.type != "text"
+                : val != "text";
+            if (val != this.$wrapAsCode) {
+                this.$wrapAsCode = val;
+                if (this.$useWrapMode) {
+                    this.$modified = true;
+                    this.$resetRowCache(0);
+                    this.$updateWrapData(0, this.getLength() - 1);
+                }
+            }
         },
         initialValue: "auto"
     },
diff --git a/lib/ace/mode/_test/tokens_markdown.json b/lib/ace/mode/_test/tokens_markdown.json
index 3c0db62f..05804dca 100644
--- a/lib/ace/mode/_test/tokens_markdown.json
+++ b/lib/ace/mode/_test/tokens_markdown.json
@@ -88,9 +88,9 @@
    "listblock",
   ["markup.list","* "],
   ["list","usually "],
-  ["string","*work*"],
+  ["string.emphasis","*work*"],
   ["list"," fine ("],
-  ["string","_em_"],
+  ["string.emphasis","_em_"],
   ["list",")"]
 ],[
    "listblock",
diff --git a/lib/ace/mode/markdown_highlight_rules.js b/lib/ace/mode/markdown_highlight_rules.js
index 4e07edff..5533fdbd 100644
--- a/lib/ace/mode/markdown_highlight_rules.js
+++ b/lib/ace/mode/markdown_highlight_rules.js
@@ -82,7 +82,7 @@ var MarkdownHighlightRules = function() {
         regex : "^```\\s*[a-zA-Z]*(?:{.*?\\})?\\s*$",
         next  : "githubblock"
     }, { // block quote
-        token : "string",
+        token : "string.blockquote",
         regex : "^>[ ].+$",
         next  : "blockquote"
     }, { // HR * - _
@@ -119,10 +119,10 @@ var MarkdownHighlightRules = function() {
                     '(\\s*"' +  escaped('"') + '"\\s*)?' +            // "title"
                     "(\\))"                                           // )
         }, { // strong ** __
-            token : "string",
+            token : "string.strong",
             regex : "([*]{2}|[_]{2}(?=\\S))(.*?\\S[*_]*)(\\1)"
         }, { // emphasis * _
-            token : "string",
+            token : "string.emphasis",
             regex : "([*]|[_](?=\\S))(.*?\\S[*_]*)(\\1)"
         }, { //
             token : ["text", "url", "text"],