The European Union's massive funding to help defend vulnerable nations in the euro zone served to boost risk appetite that lifted most Asian stocks and currencies Monday.
Tokyo’s Nikkei 225 regained 166.11 points – or 1.6% -- to 10,530.70
In Hong Kong, the Hang Seng index zoomed up 506.35 points, or 2.5%, to 20,426.64
But while analysts described the move as just what the doctor prescribed to repair investor sentiment, some said worries about the ability of member European countries to slash their yawning fiscal deficits still remain.
The relief rally in Asia came after European finance ministers and central bankers agreed on a new loan program, which could top 750 billion euros ($971 billion U.S.), to keep the Greek debt crisis from spreading to other European nations.
While European nations will chip in about 500 billion euros, the International Monetary Fund could contribute an additional 250 billion euros
While the European Central Bank said it would intervene in the euro zone's debt markets to ensure they have liquidity, other central banks around the world also joined hands with the ECB.
The ECB said late Sunday that the U.S. Federal Reserve is going to make sure that foreign banks have the dollars they need, and that the Fed will ship dollars overseas through the Bank of Canada, the Bank of England, and the Swiss National Bank, in addition to the ECB. The Bank of Japan said later that it too will join the swaps agreement.
In currency trading, most Asian currencies outside the Japanese yen advanced on improved risk appetite. The Australian dollar soared to $0.9051 from $0.8881 late in New York on Friday, with the greenback falling to 1,130.68 Korean won from 1,142 won.
The Japanese yen weakened however, as investors likely sold the low-yielding currency to fund the purchase of riskier assets, with the U.S. dollar buying 92.81 yen from 91.58 yen.
The euro, meanwhile, spiked more than 3% to 120.42 yen from 116.78 yen.
Elsewhere;
Shanghai’s CSI 300 added 21.44 points, or 0.8%, to 2,858.23
Singapore’s Straits Times Index moved higher 59.37 points, or 2.1%, to 2,840.48
Korea’s Kospi index advanced 30.13 points, or 1.8%, to 1,677.63
Taiwan’s Taiex index gained 97.63 points, or 1.3%, to 7,664.73
New Zealand’s NZX 50 Index jumped 11.78 points, or 0.4%, to 3,170.62
Australia’s S&P/ASX 200 recovered 119.10 points, or 2.7%, to 4,599.80
