Asian markets rose in early trade Monday as investors reacted to news that Europe vowed to its G20 partners at the weekend to take swift and decisive action on tackling its debt crisis.
Tokyo rose 1.53 percent by the break, Hong Kong gained 1.97 percent, Sydney added 1.91 percent and Seoul was up 1.41 percent while Shanghai rose 0.7 percent, reversing an initial dip into negative territory.
The gains took a lead from Wall Street and European markets, which rose Friday amid hopes the weekend meeting would result in a concrete plan to battle Europe’s fiscal woes and prevent the world economy from slipping back into recession.
Speaking after a meeting of G20 finance ministers and central bankers in Paris, French Finance Minister Francois Baroin said the eurozone would present answers as soon as next weekend, at a summit of EU leaders in Brussels.
US Treasury Secretary Tim Geithner described the comments as “encouraging”, saying “our European colleagues in Paris about a new comprehensive plan to deal with the crisis on the continent.”
German Chancellor Angela Merkel and French President Nicolas Sarkozy have pushed hard for the idea of a tax on financial market transactions.
G20 nations, which represent 85 percent of the global economy, pledged to announce at next month’s Cannes summit concrete steps to boost growth as the world economy skids.
YEAH LET’S GO US MARKETS!