FXstreet.com (Barcelona) - Asian markets are trading higher, in most cases, on improved optimism after better than expected U.S. Non-Manufacturing ISM. The Euro has extended its rally from Friday's low, while the Pound remains consolidating.

Japanese Nikkei Index edges up 0.1%, while Hong Kong's Hang Seng Index adds 0.7%, and South Korean Kospi Index declines 0.7%. Australian S&P Index has risen 0.5% after a 0.25% rate hike by the RBA, the first rate hike approved by a developed economy after the global slump.

In the U.S. Non-Manufacuring ISM Index increased to 50.9 in September, from 48.4 in August, in a scale showing expansion of the sector's activity on figures above 50. Furthermore, Goldman and Sachs, had raised its estimation of the financial sector from Neutral to Attractive which boosted Bank's shares.

Dollar drops against Euro and Yen

EUR/USD upward reaction from Friday's low at 1.4480 has extended on Tuesday's Asian session, as the Euro has broken above 1.4670/80 area to reach levels around 1.4735 at the moment of writing; 0.55% above its day opening price.

USD/JPY failed on its attempt to extend its recovery above the 90.00 level, and the pair has plunged during Asian session, from levels around 89.65 to reach prices at 88.85 session low at the moment of writing, having given away most of the ground taken on Friday and Monday's Asian session.

GBP/USD has not been able to take advantage of recent Dollar weakness, and the Sterling remains trading below 1.6020 area, in a range, roughly from 1.5900 and 1.6020, although, at the moment of writing, Cable is trading around 1.6000.