Asian stocks rally on China stimulus package

A massive economic stimulus package from Beijing, a Wall Street rally and a pledge by the world's major economies to do what is needed to overcome the credit crisis helped Asian stocks soar Monday.
There were also hopes that a meeting of world leaders in Washington at the weekend would come up with something positive to ease pressure on the global financial markets amid an economic slowdown.
Tokyo leapt almost six percent and Shanghai surged 7.27 percent on the back of the 586-billion-dollar deal announced by China -- Japan's biggest trading partner -- which it hopes will boost domestic consumption.
Hong Kong added 3.5 percent, Sydney was 1.4 percent higher, while Seoul rose 1.6 percent and Singapore was up 1.16 percent.
Taipei closed flat despite the central bank cutting interest rates on Sunday.
The Chinese package "boosted markets due to the timing and the sheer magnitude of the aid," said Societe Generale strategist Kenichi Yumoto.
The move helped the entire region, with many exporting countries relying on China's massive consumption to support their own economies.
The Group of 20 major wealthy and emerging nations meanwhile pledged Sunday in Sao Paulo to take "all necessary steps" to boost sagging market confidence and give a bigger voice to developing countries in global economic affairs.
The meeting aimed to lay the groundwork for a November 15 summit on the financial turmoil in Washington.
Tokyo was also helped by a weaker yen, which boosted exporters. The dollar was trading at 98.97 to the yen in Tokyo afternoon trade, up from 98.21 in New York late on Friday. The euro climbed to 1.2885 dollars from 1.2719 and to 127.51 yen after 124.89.
And in Australia Prime Minister Kevin Rudd looked to shore up the car industry with a 3.2 billion dollar (2.2 billion US) stimulus package.
The rises followed Friday's rally of 2.85 percent on Wall Street, which saw investors in a buy mood after miserable unemployment figures led them to bet on another interest rate cut by the US Federal Reserve.
However, the buoyant markets belied data showing the real economy is struggling.
Japan's core machinery orders plunged 10.4 percent on the previous quarter -- the fastest pace in a decade -- as the economy teetered on the verge of recession.
The orders are a leading indicator of corporate capital spending and shows companies are cutting back on investment in new plants and equipment amid the economic slump.
And Fitch Ratings downgraded its sovereign ratings outlook on South Korea to negative from stable due to the impact of the global financial crisis.
TOKYO: Japan's Nikkei stock index soared 5.8 percent.
HONG KONG: Hong Kong share prices closed 3.5 percent higher.
The benchmark Hang Seng Index closed up 501.2 points at 14,744.63, after surging above 15,000 points soon after the opening. Turnover was 60.71 billion Hong Kong dollars (7.78 billion US).
SHANGHAI: Chinese share prices closed up 7.27 percent.
Demand for construction-related shares rose while banks and property developers also received a boost after the government said it would modestly relax its monetary policy to spur growth, dealers said.
MUMBAI: Indian shares rose 5.74 percent on Monday, crossing the 10,000-point level.
The benchmark 30-share Sensex index jumped 571.87 points to 10,536.16.