(CNN) -- Stock markets across the Asia-Pacific region surged higher Tuesday on the heels of a massive global rally a day earlier and in anticipation of more government investment in ailing banks.
Japan's Nikkei Exchange was up more than 13 percent at midday. South Korea's KOSPI index gained 4.7 percent and Australia's All Ordinaries picked up 4.5 percent.
Taiwan's Weighted index -- one of the few Asian markets to lose ground on Monday -- showed strength in late morning trading, gaining more than 5 percent. Singapore's Straits Times index was also up more than 5 percent.
The administration of U.S. President George W. Bush is set to unveil sweeping measures to stabilize the nation's financial system early Tuesday.
U.S. government officials are expected to announce an investment of up to $250 billion in banks, according to a person briefed on the proposal. The plan also calls for the FDIC to back up senior bank debt for three years -- a move that would strengthen banks' financial footing.
Bush will meet with his working group on financial markets at 1130 GMT and make a statement shortly afterward.
U.S. Treasury Secretary Henry Paulson will then lead a group of officials making the announcement. Paulson, Federal Reserve Chairman Ben Bernanke, FDIC Chairwoman Sheila Bair and Securities and Exchange Commission Chairman Christopher Cox are among the officials expected to attend.
On Tuesday, the Australian government announced it would spend $7.4 billion to boost that nation's economy, The Associated Press reported.
The moves in the United States and Australia would mirror similar steps taken by European nations on Monday. Those efforts helped spark a rally overseas that sent European stock prices soaring.
Wall Street followed with the Dow Jones industrial average jumping 936 points, or 11 percent, to mark the blue chip average's largest ever one-day point gain.
Monday's rally was a dramatic turnaround. Last week was the Dow's worst ever, capping a stunning eight-session selloff that seared off 2,400 points. That represented a 22 percent decline in the Dow, the worst since at least the 1930s -- and represented some $2.4 trillion in market value.
Other New York markets, the Nasdaq and the S&P also gained more than 10 percent on the day. In Europe, the French CAC 40 and the German DAX also had gains of more than 10 percent.
London's FTSE 100 finished 8.26 percent higher, while Asian markets saw similar large gains of between 7-10 percent.
"Seeing that there's going to be more of a global commitment to resolving the financial crisis has given confidence to investors and gotten them to put some money to work," Christopher Colarik, portfolio manager at Glenmede Investment Management, told CNNMoney.
The world's major economic powers were forced into action after weeks of turmoil on financial markets that saw trillions wiped off the value of stocks.
Most troubling was the collapse in confidence and supply of liquidity in major banks, burdened by unknown amounts of bad debs related to sub-prime mortgages.
The markets responded after European leaders outlined plans which will see more than a trillion dollars pumped into the banking sector. Watch more on market recovery »
Britain's banks detailed their plans to take up to $63 billion of government money to boost their balance sheets. Follow latest market prices
Royal Bank of Scotland said it would raise $34 billion worth of capital, with the government buying $8.6 billion of preference shares directly and underwriting $25.7 billion of ordinary shares.
The UK government also injected a further $29.2 billion into Lloyds TSB Group and HBOS, which are in the process of merging. Barclays said it would boost its capital by at least $11.4 billion without government help.
But while the FTSE rose overall, UK banking shares were still badly hit, with HBOS down 27.54 percent, Lloyds TSB down 14.47 percent and RBS down 8.37 percent.
German Chancellor Angela Merkel announced a scheme which could see the German government provide $536.7 billion in guarantees for banks and as much as $107.3 billion for recapitalization.
French President Nicolas Sarkozy said his government was ready to spend up to $490 billion on its bank rescue plan. "The taxpayer will be the winner," he told the French people in a nationally televised address. Watch more on the gold rush during the downturn »
Sarkozy said the money included $436 billion to guarantee bank refinancing and another $54 billion for a government-backed financing vehicle to provide banks with the capital they need. The figure was a maximum, which may not be reached if the market started functioning normally.
In Madrid, Spanish Prime Minister Jose Luis Rodriguez Zapatero announced that his government will set aside a maximum of $134 billion to guarantee inter-bank loans.
Also Monday, the U.S. Federal Reserve announced it will offer unlimited amounts at fixed rates in exchange for collateral to the central banks of England, Switzerland and the European Union.
The Bank of England, the European Central Bank and the Swiss National Bank will then provide private financial institutions with U.S. dollar loans in the latest attempt to unfreeze credit and boost liquidity, the banks confirmed in a joint statement. Watch how the world reacted »
The U.S. Treasury also announced outline plans on how it would spend $700 billion allocated by Congress to bailout its own troubled financial sector.
The plans include insuring mortgage-backed securities and mortgages ensuring banks and investors don't lose money if borrowers default, purchasing equity in financial institutions, and helping delinquent borrowers stay in their homes. Watch how the U.S. is spending $700 billion »