Asian markets advence on banks; Dollar, lower after Friday's sell-off

FXstreet.com (Barcelona) - Asian markets have opened the month with minor gains, on the back of a lower than expected economic contraction in the U.S, and positive quarterly earnings in major banks. Euro and Pound consolidate at high levels.

Japanese Nikkei Index edged down 0.1%, while Hong Kong's Hang Seng Index rose 0.6%, and South Korean Kospi Index advanced another 0.6%. Australian S&P Index added 0.8% and Chinese Shangai market went 1.3% up.

Banks have lead on Monday gains following a st5rimg f better than expected earnings reports by major lenders. Mitsubishi UFJ rose 4.4% after releasing that its net profit increased by 48% year on year in the second quarter.

Pound testing Year high

GBP/USD has reached a fresh 200.9 high at 1.6779 on early Asian session, following Friday's rally from 1.6470, although the pair has pulled down to trade in a range from 1.6700 to 1.6755.

EUR/USD continues moving in a range right below 2009 high at 1.4338. After Friday's rally from 1.4100 reached levels right below 1.4280, the Euro has tested 1.4300 on early Asian session, to ease to levels right below 1.4250 ahead of the European session opening.

USD/JPY suffered a sharp reverse on Friday dropping like a stone, from 95.85 high to levels right abobve 94.50. During Asian session, the pair has been moving in a range from 94.60 t0 94.85.