Asian central banks step in to calm markets

Asian central banks took further steps on Monday to calm markets roiled by fears over a credit squeeze with Bank of Japan injecting $5.1 billion into the banking system and others pledging to follow suit, according to a report by Reuters.

Asian stock markets were broadly higher on Monday with Japan's Nikkei 225 index up more than half a percent and South Korea's Kospi up nearly 1%.

Last week, US Federal Reserve, European Central Bank and other central banks pumped in over $290 billion to help banks tide over any liquidity crisis.

The ECB announced today that it will infuse fresh funds to smooth financing conditions.