FXstreet.com (Barcelona) - Asian markets have extended rally on Tuesday celebrating U.S. Treasury's Plan to buy toxic assets. Risk appetite has increased and USD/JPY advanced higher during Asian trading time, as did the GBP/USD.
Stock markets in Asia are going on with the positive streak of the last two weeks, U.S. toxic assets flushing plan has continued favouring banks shares, as investors' confidence in the financial system increased. Tokyo Nikkei Index has risen 3.2%, and Hong Kong's Hang Seng added 1.6%. South Korean Kospi Index has gained 1.7%.
Wall Street boosted yesterday as markets celebrated Tim Geitner's announcement to buy toxic assets by troubled financial institutions. Dow Jones rose 6.84%, and the Nasdaq Index jumped 6.76%
Yen tumbles against the Dollar
The Japanese Yen came under heavy selling pressure, bringing the USD back to levels close to 10.00. USD/JPY has risen from 97.00 to 98.40 maximum level in Asian trading times. A weaker yen which will be welcomed by Japanese exporters.
GBP/USD has appreciated from levels around 1.4560 to a maximum level some pips above 1.4705 resistance level, although the pair has set back below the mentioned level and, at the moment of writing, trades around 1.4650.
EUR/USD, however has been little moved, and has traded in a narrow range from 1.3615 to 1.3680.