FXstreet.com (Barcelona) - Asian stock markets have opened the week with declines on widespread concerns of a distant economic recovery on the back of new government bailouts to AIG and Citigroup.

Tokyo Nikkei 225 index has lost 4% on Monday while the South Korean Kospi Index lost 3.6% and Hong Kong's Hang Seng Index went 3.8% down.

Stock markets were driven lower mainly by banks Mitsubishi UFJ and Mizuho Financial Group have posted losses above 4% on Monday in Tokyo, on investors' fears about the health of the global banking system.

Euro and Pound slightly down, Yen steady

Euro and Pound have opened the week with slight declines against the Dollar while the Yen remains at the same levels as on Friday.

The Euro has dropped from about 1.2640 at Asian opening times declining to a session low of 1.2545 although it has bounced back and at the moment of writing, ahead of European session opening, the European united currency advances higher towards 1.2600.

The Pound traded about 1.4300 in Asian session opening times and fell afterwards to a session low of 1.41800 to recover ahead of European session to advance towards 1.4280/90.

The USD JPY has moved sideways during Monday's Asian session from a minimum of 97.00 to a maximum level right below 98.00.