Asian markets enjoyed some Christmas cheer Wednesday as strong U.S. housing data and a successful bond issue by Spain added to upbeat business and consumer sentiment in Germany.

Dealers appeared to have overcome their nervousness seen earlier this week following news that North Korean leader Kim Jong-Il had died, leaving the nuclear-armed rogue nation in a state of uncertainty.

European stocks and the euro rose further on Wednesday after the ECB moved to boost lending and Spanish borrowing costs dropped, easing tensions over the Eurozone debt crisis, traders said.

The European Central Bank said it had injected a record 489.19 billion euros ($641 billion) into Eurozone banks via its first-ever three-year refinancing operation.

Iranian officials, lawmakers and media on Wednesday worriedly snapped their focus on to their country's sanctions-hit economy amid a sudden and accelerating plunge in the currency.

The currency, the rial, was trading at 15,800 to the dollar -- its lowest point ever, and an indication of the fragility of the economy as ramped-up Western sanctions bit.

The EU is short of a target for loans to the IMF destined for a Eurozone bailout, with Britain leaving its EU partners in the lurch for the second time this month.

Eurozone chief Jean-Claude Juncker said the 17 countries that share the single currency pledged 150 billion euros ($195 billion) in bilateral loans for the International Monetary Fund late on Monday. Europe hopes the money can help stabilize the debt-laden euro area

Syria has decided to slash public sector spending in a bid to head off a crisis for an economy that has taken a beating due to months of unrest and sanctions, media said on Tuesday.

Prime Minister Adel Safar has issued an order for the public sector to reduce spending by 25 percent in a move designed at "limiting waste", Al-Baath newspaper reported.

Australia's central bank on Tuesday said there was a "non-trivial" possibility of a severe contraction in the Eurozone economy, leaving the door open for further interest rate cuts in 2012.

The Reserve Bank of Australia (RBA) said downside risks to the global economy from Europe's sovereign debt woes had increased of late "though the timing and magnitude of any effects... remained very difficult to predict".

Japan is preparing to buy Yuan-denominated bonds issued by the Chinese government under a proposed bilateral currency and financial agreement, according to the Nikkei business daily.

Japanese and Chinese officials are working out plans to have the pact signed when their premiers hold summit talks in Beijing on Sunday, the brief dispatch said on Tuesday.

Western sanctions have taken such a toll on Iran over the past 18 months that now -- as the screw is about to be tightened yet further -- Tehran's studied insouciance is slipping, with officials admitting the economic damage being felt.

"War-time conditions" demanded dramatic policy reactions, the head of Tehran's chamber of trade and industry, Yahya AlEshaq, told Sunday's Iran Daily newspaper.

The Swiss franc rose further against the euro on Monday despite last week's decision by the central bank to maintain its cap on the exchange rate.

At 2:45 pm (1345 GMT) the Swiss currency stood at 1.219 francs against the euro -- a high since the end of November -- compared to 1.2204 late on Friday.

The British government will Monday accept in full recommendations to split banks' retail and investment units in a bid to avoid a repeat of the financial crisis, business minister Vince Cable said.

A report by the government-appointed Independent Commission on Banking, published in September, recommended measures to protect retail operations as part of sweeping reforms to be brought in by 2019.