Asian stock markets extend rally

In Japan, the Nikkei rose 3.2%, Hong Kong's Hang Seng index was up 1.6% and South Korea's Kospi index rose 1.7%.On Wall Street, the Dow Jones index rallied 7% to close at 7,775 points - its highest level in nearly a month.European markets also reacted positively to the US plan, with France's Cac 40 index up 1.1% and Germany's Dax up 0.8% in early trading.
Investors took cheer from the US Treasury's move to kick-start the financial sector by buying up to $1 trillion (£688bn) worth of toxic debt.

A surprise jump in the number of homes sold also raised hopes that the battered US housing market could be starting to recover.

However, analysts said that investor confidence remained fragile.

"At the end of the day there has been no game changer, even if the plan is implemented perfectly. And that's an enormous 'if'," said Kirby Daley, senior strategist at Newedge Group in Hong Kong.

Matt Buckland, a dealer at CMC Markets, said that European markets were expected to open higher, with the FTSE 100 of leading UK shares poised to break through the key 4,000-point level.