HONG KONG, Dec 15: Asia’s stocks bounced back on Monday as investors hopes were raised of a bailout in the United States for the Big Three auto companies.

The markets were battered on Friday after a $14-billion rescue package for the companies collapsed in the US Senate.

But on Monday Japan’s Nikkei index surged 5.21 per cent, Hong Kong jumped two percent and Seoul 4.9 per cent after Washington suggested it would help by tapping into the $700-billion bailout initially aimed at the finance sector. Sydney leapt 2.3 per cent.

The word from Washington helped a rally on Wall Street, which closed up 0.75 per cent Friday.

Japan advanced despite the grim results of a business survey showing manufacturers’ sentiment had suffered the steepest drop since the 1970s.

The Tankan survey revealed confidence had tumbled to minus 24 in December from minus three in the previous quarter -- anything below zero means pessimists outnumber optimists.

TOKYO: Japan’s Nikkei stock index jumped 5.21 per cent.

The Nikkei climbed 428.79 points to 8,664.66. The Topix index of all first section issues gained 33.56 points, or 4.1 percent, to 846.93.

Stocks shot higher after the US government said it would consider dipping into its 700-billion-dollar Wall Street rescue fund to bail out US automakers.

Toyota Motor leapt 9.8 per cent to 3,030 yen, Honda Motor soared 8.5 per cent to 2,085 yen and Nissan Motor advanced 7.5 percent to 331 yen.

HONG KONG: Hong Kong share prices closed 2.0 per cent higher.

The benchmark Hang Seng Index was 288.56 points higher at 15,046.95, after trading between 15,007.42 and 15,386.90 during the session. Turnover was light at 42.60 billion Hong Kong dollars (US$5.46 billion).

China Construction Bank trimmed the index’s gains, after it fell 2.4 per cent to 4.48 dollars on a report which said Bank of America was to sell some of its shares in the mainland lender.

Statements issued by Beijing over the weekend helped boost the market, analysts said.

SYDNEY: Australian shares finished 2.3 per cent higher.

The benchmark SP/ASX 200 rose 81 points to 3,591.4 while the broader All Ordinaries had gained 83.2 points, or 2.4 per cent, to 3,535.7.

Turnover was 1.29 billion shares, worth $3.83 billion (US$2.56 billion.

SINGAPORE: Singapore shares closed 1.98pc higher.

The main Straits Times Index advanced 34.42 points to 1,774.76. Volume totalled 934 million shares worth 786 million Singapore dollars (510 million US).

Among the blue chips, Singapore Airlines added two cents to 11.06 and Singapore Telecommunications was five cents higher at 2.66.

KUALA LUMPUR: Malaysian shares closed 0.7 per cent lower.

The Kuala Lumpur Composite Index shed 5.8 points to close the day at 846.47. Public Bank added 0.6 percent at 8.30 ringgit and Bumiputra-Commerce lost 2.5 per cent at 5.85 ringgit.

Telekom Malaysia lost 1.67 per cent at 2.95 ringgit while Tenaga Nasional closed flat at 5.90.

WELLINGTON: New Zealand shares finished virtually unchanged.

The benchmark NZX-50 index closed 0.52 points lower at 2,676.43.

Air New Zealand was unchanged at 84 cents after the Commerce Commission announced legal action against the airline and 12 other carriers for alleged price-fixing in air freight.

Market leader Telecom rose four cents to $2.36 and Fletcher Building rose six cents to $5.76 .

MUMBAI: Indian shares rose 1.47.

The benchmark 30-share Sensex index rose 142.32 points to 9,832.39.—AFP