LONDON (AFP) - Global stock markets surged Monday as investor optimism grew ahead of the official launch of a 500-billion-dollar (366-billion-euro) US government plan to purge banks of toxic assets. In morning European trade, Frankfurt won 1.79 percent, London gained 1.58 percent and Paris jumped 1.48pc in value. In Asia, Tokyo leapt 3.39pc, nearing a two-month peak, and Hong Kong raced 4.78pc higher. "Today's focus is squarely going to be back on the US Treasury with an announcement to tidy up the ongoing toxic debt issue amongst the banks being widely expected by traders," said CMC Markets dealer Matt Buckland. "This should prove to be good news for equities... but the detail of the US plan will likely take some time to disseminate which could in turn help extend the rally." US Treasury Secretary Timothy Geithner will Monday unveil plans to create a government body to relieve bank balance sheets of the troubled assets that lie at the heart of the global financial crisis. He will hold a press conference at 1245 GMT ahead of Wall Street's reopening at 1430 GMT. Geithner wrote in The Wall Street Journal on Monday that the administration of President Barack Obama has developed a "Public-Private Investment Program" that will set up funds to provide a market for the troubled loans and securities issued by US banks over the past several years. "The new Public-Private Investment Program will initially provide financing for 500 billion dollars," US Treasury Secretary Geithner wrote. This would have "the potential to expand up to one trillion dollars over time, which is a substantial share of real-estate related assets originated before the recession that are now clogging our financial system," he said. Geithner explained that the measure was needed because the US financial system as a whole was "still working against recovery" and "many banks, still burdened by bad lending decisions, are holding back on providing credit." In Asian trade on Monday, Tokyo's Nikkei-225 index closed up 3.39pc at 8,215.53 points - which was the best finish since Jan 29. The Nikkei has risen in five of the past six sessions, soaring more than 1,000 points, or 14 percent, as investors look beyond the current economic downturn and focus on prospects for a recovery. Banks were among the main winners as the US banking plan eased worries about the international credit crunch which has pulled the eurozone, Japan and the United States into recession. Elsewhere on Monday, shares in the German auto and truck maker Daimler leapt higher in Frankfurt after the group revealed that the United Arab Emirates would become its biggest shareholder. Daimler shares showed a gain of 1.76 percent to 21.71 euros as investors welcomed prospects for a stronger balance sheet. Daimler, which makes Mercedes-Benz cars, said Sunday that the Abu Dhabi state investment fund Aabar Investments, would invest 1.95 billion euros (2.65 billion dollars) in return for a 9.1pc stake.