FXstreet.com (Barcelona) - Asian markets are trading higher on Wednesday, with investors' sentiment buoyed by initial signs of recovery in Japan after the devastating earthquake and tsunami that hit the county's North Eastern coast. In currency markets, the Dollar has weakened across the board. Japanese Nikkei Index advanced 1.1%, while South Korean Kospi Index rose 1.5%, the Hong Kong Hang Seng Index added 0.5%, and the Australian ASX Index rose 0.3%. In China, the Shangai Composite Index advanced 0.7%. The Banking sector has been leading losses in the Nikkei market, with Mizuho Corporate Bank 2.4% up favoured by news of a plan to merge their retail and corporate branches by 2013. Mitsubishi UFJ Financial Group advanced 2.1% and Mitsui Financial Group has risen 2.7%. Shares of Renesas Electronic Group, a chipmaker for car computer systems, surged beyond 5% in Japan after the company announced their plan to increase production by 20% from June, which has been taken as a signal of industrial recovery after the disruption caused by March earthquake. Dollar weakens EUR/USD retreat from 1.4940 area on early May found support on Monday at 1.4045, and the pair's recovery extended above 1.4250 week-high on Wednesday's Asian session reaching 1.4285 high. GBP/USD retreat from 1.6305 high on Tuesday has been contained at 1.6185 and the pair bounced up on late US session to extend recovery in Asia, reaching 1.6290 high ahead of London session opening. USD/JPY rallied on Tuesday's Asian session extending its recovery from Friday's high, at 80.33 to nearly 3-week high at 81.80, and the pair has been pulling lower since, to find support at 81.00 area ahead of the European session opening.

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