Asian stocks up as UAE pledges bank support

Asian markets are trading broadly higher today, Monday, as investor panic over debt-riddled Dubai shows signs of easing.

Many financial stocks in the region have advanced, rebounding from an Asian sell-out last Friday. Monday is seeing major markets jumping by as much as 2 percent. The UAE's central bank is helping to soothe investor fears, with a pledge on Sunday to make extra funding available to all banks in the country, including foreign institutions with local branches.

However, the bank's announcement, aimed at shoring up confidence and averting a bank run, did not mention lending any specific help to Dubai. Asia's turnaround is following on the heels of Europe, where markets in the region picked up on Friday.

Hideo Kuman0, Chief Economist of Dai-Ichi Life Research Institute said "There was a slight bit of optimism in the Japanese markets today after European shares rebounded while U.S. markets were closed. The rebound in European shares suggests that the Dubai debt shock can be absorbed."