FXstreet.com (Barcelona) - Asian markets have extended the rally of the last two weeks fuelled by financials ahead of the release of U.S. Treasury plan to purchase troubled assets. Euro and pound have risen and the Dollar has appreciated against the Yen

Japanese Nikkei Index has risen 3.5% on Monday after a long weekend reaching a six-weeks high, while South Korean Kospi Index rose 2.4% and Australian S&P Index added 2.4%.

Financials have been the largest gainers as investors' confidence increased, expecting U.S. Treasury's Timothy Geitner to release the plan t buy toxic assets from troubled banks.

Dollar and Pound return to mid-term highs; USD/JPY recovers

Euro and pound, after mild downward corrections on Friday, have returned to peaks achieved after last week's rally. EUR/USD has bounced up at 1.3530 and advances towards 10-week high at 1.3740.

Similar performance has been followed by the Pound, after having reached a 3-weeks high at 1.4597, the Pound eased to 1.4390 o Friday, to rally on Monday's Asian trading hours reaching 1.4575.

The USD/JPY has rallied from 95.45 to hot resistance at 96.60 in Asian trading times. 96.60 resistance level has remained unbroken, and the pair has eased to 96.00 ahead of the European market opening.