Asian Market and US futures advanced in the first trading session

The US futures and Asian markets advanced in the first trading session of the week, in spite of the Nikkei being closed for business tonight, as the country observes the Greenery Day Holiday.

There were no important news releases in the weekends. However, in Asia, a group of nations decided to set up a $120 billion foreign-currency reserve fund with Japan offering another $60 billion in swap facilities to assure the Yen’s liquidity.

There have been discussions for quite long time about such measures in the area, but up till now the Asian nations failed to make an agreement. The reserve fund, also called the Chiang Mai Initiative which allow the Asian countries to borrow as much as 20% of a pre-decided amount without any limitations, but the rest of the 80% will only come after numerous restrictions have been place.

This measure is very good for the region’s constancy and will also allow some countries like Japan, China and South Korea to establish themselves as regional economic leaders, experts said. The three nations will add substantial amounts to the funds, which help them in development.