Tokyo - Asia-Pacific stocks soared Monday after South Korea announced a more than 130-billion-dollar package to stabilize the country's financial sector. Japan's benchmark Nikkei 225 Stock Average was up 3.59 per cent at 9,005.59 while its broader Topix index of all first-section issues gained 3.7 per cent to close at 927.37.
The market for Asia's largest economy was also buoyed by speculation that corporate earnings reports would beat analysts' expectations.
The biggest percentage increase of the day was seen in Hong Kong, where the benchmark Hang Seng Index closed up 5.28 per cent, buoyed by a general rebound in stocks across Asia.
The blue-chip index closed at 15,323 and ended a three-day losing streak amid wider optimism among Asian investors that governments were taking tough action to shore up their economies, analysts said.
In China, analysts said they expected the government would unveil a stimulus package after the National Bureau of Statistics said the country's growth rate slowed to 9 per cent in the third quarter, its lowest rate in five years.
In South Korea, the government announced plans Sunday to pump 130 billion dollars into the banking sector that would mainly be used to secure banks' maturing foreign currency debt.
South Korea followed other countries' in unveiling financial rescue packages after the US subprime mortgage crisis led to a credit crunch, caused financial institutions to collapse and spread around the globe.
Mainland China's key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, gained 2.25 per cent to close at 1,971.01.
The smaller Shenzhen Component Index also climbed 3.14 per cent to 520.38.
Financial and property shares led the rally, which followed heavy losses in the two markets last week.
In South Korea, the benchmark Kospi index rose 2.3 per cent to close at 1,207.63. The local currency, the won, also soared against the dollar, helped by the government's plan to ease the liquidity crunch and prop up the country's troubled financial industry.
Sydney's ASX 200 climbed 4.3 per cent to 4,142. There were rises in all sectors with retailers gaining after weeks in the doldrums. Mining market leader BHP Billiton Ltd put on 6 per cent while its rival Rio Tinto Ltd gained 5 per cent.
Sentiment was helped by big banks dropping their spreads to accord with easier access to the money markets because of government guarantees for all deposits.
Taiwan's Taiex index bucked the regional trend as it closed down 0.58 per cent at 4,931.84 after government limits stopped Taipei's stock market from falling as much as other world markets last week and investors sold stocks Monday to catch up.
New Zealand's benchmark NZX 50 index rose 2.89 per cent while in South-East Asia, Singapore's Straits Times Index took a 3.23-per-cent leap to 1,939.22. The Jakarta Stock Index gained 1.97 per cent, and the Stock Exchange of Thailand Index was up 1.2 per cent.
In India, the benchmark Sensex rose 2.48 per cent to 10,223.09, and the broader 50-share Nifty index was up 1.58 per cent to 3,122.8.
In China, the government on Monday reported 9-per-cent growth in estimated gross domestic product for the July-to-September quarter, maintaining China's fast but marginally slower expansion despite global financial woes.
The State Council, or cabinet, on Sunday said China would focus on developing rural areas and measures to encourage more loans for small businesses for the rest of this year.
The global financial turmoil would have a gradual effect on China and the government would "adopt flexible and cautious macroeconomic policies" to maintain growth, the State Council said in a statement.
The statement said China would also cut the tax on home sales to encourage people to buy apartments, after sales slumped by more than 50 per cent in Beijing and 39 per cent in Shanghai in the first eight months of this year.
