Asia Pacific extends market Rebound

Stock markets across the Asia-Pacific region surged higher Tuesday on the heels of a massive global rally a day earlier and in anticipation of more government investment in ailing banks. Japan's Nikkei Exchange was up more than 13 percent at midday. South Korea's KOSPI index gained 4.7 percent and Australia's All Ordinaries picked up 4.5 percent. Taiwan's Weighted index -- one of the few Asian markets to lose ground on Monday -- showed strength in late morning trading, gaining more than 5 percent. Singapore's Straits Times index was also up more than 5 percent. The administration of U.S. President George W. Bush is set to unveil sweeping measures to stabilize the nation's financial system early Tuesday. U.S. government officials are expected to announce an investment of up to $250 billion in banks, according to a person briefed on the proposal. The plan also calls for the FDIC to back up senior bank debt for three years -- a move that would strengthen banks' financial footing. Bush will meet with his working group on financial markets at 1130 GMT and make a statement shortly afterward. U.S. Treasury Secretary Henry Paulson will then lead a group of officials making the announcement. Paulson, Federal Reserve Chairman Ben Bernanke, FDIC Chairwoman Sheila Bair and Securities and Exchange Commission Chairman Christopher Cox are among the officials expected to attend. On Tuesday, the Australian government announced it would spend $7.4 billion to boost that nation's economy, The Associated Press reported. The moves in the United States and Australia would mirror similar steps taken by European nations on Monday. Those efforts helped spark a rally overseas that sent European stock prices soaring. Wall Street followed with the Dow Jones industrial average jumping 936 points, or 11 percent, to mark the blue chip average's largest ever one-day point gain. Monday's rally was a dramatic turnaround. Last week was the Dow's worst ever, capping a stunning eight-session selloff that seared off 2,400 points. That represented a 22 percent decline in the Dow, the worst since at least the 1930s -- and represented some $2.4 trillion in market value. Other New York markets, the Nasdaq and the S&P also gained more than 10 percent on the day. In Europe, the French CAC 40 and the German DAX also had gains of more than 10 percent. London's FTSE 100 finished 8.26 percent higher, while Asian markets saw similar large gains of between 7-10 percent. Seeing that there's going to be more of a global commitment to resolving the financial crisis has given confidence to investors and gotten them to put some money to work," Christopher Colarik, portfolio manager at Glenmede Investment Management, told CNNMoney. The world's major economic powers were forced into action after weeks of turmoil on financial markets that saw trillions wiped off the value of stocks.