Most Asian stock markets rose following commitments by the world's biggest central banks that they will work together to simulate lending in the global economy.

The US Federal Reserve, the European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland have revealed a plan under which they will take coordinated steps to simulate lending starting December 5. Authorities in China also hinted that they will increase liquidity for banks to lend.

Global investors were concerned that the lack of funding will affect growth in the world economy. As the banks announced a coordinated response, the investors showed their faith in their ability to tackle the issues with the global economy. The investor sentiments were lifted on hopes that the new plan would limit market volatility and may also help find a solution to the Eurozone debt crisis.

Hong Kong's Hang Seng stock index jumped more than 5%, South Korea's Kospi gained 3.9%, Japan's Nikkei 225 index rose 2.2% and Australia's ASX 200 added 2.5%.

The Euro rose following the announcement and was trading at the level of 1.3445 against the US dollar and at 104.32 against the Japanese yen.