A trader in South Korea this morning

Image: Ahn Young-joon/AP/Press Association Images

ASIAN MARKETS HAVE climbed significantly overnight, reflecting a  continuing boost of confidence after world banks moved yesterday to ease the strains on the global financial system.

Hong Kong’s Hang Seng index has shot up by 5.61 per cent since trading began, with Japan’s Nikkei also up by 1.93 per cent. The China Securities Index rose by 2.46 per cent.

The euro held steady against the dollar in a sign that markets were somewhat reassured, after days of crisis in the eurozone.

European markets all rose yesterday on the back of the announcement, in which six central banks announced that they would make it easier for financial institutions to access US dollars.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the banks said in a joint statement.

All eyes will be on the bond markets today as Spain and France seek to raise new investment. European bonds, whose yields have largely been rising in recent days, remained steady yesterday after the announcement.

Read more: World banks move to bolster global economy>

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