HONG KONG, Aug 25: Asian shares closed mostly up on Monday, led by a 3.5-per cent jump in the Hong Kong stock market, as a rally on Wall Street at the end of last week lifted spirits.

Reports that China is mulling an economic stimulus package worth around $54 billion also boosted the Hong Kong bourse. The Chinese economy has slowed, with poor growth in the developed world threatening its export engine.

Speculation that struggling US investment bank Lehman Brothers could be taken over or win a cash infusion boosted Wall Street late last week and improved the mood in Asia on Monday.

Meanwhile, world oil prices continued to decline in Asian trade on the back of gains in the dollar, which has been rising against the euro and sterling on growing concern about the slowing European economies.

The falling oil price, which stands at around $114 per barrel, hit some commodity-heavy smaller bourses, with Thailand and Malaysia both falling back. The Philippine market was shut for a holiday.

TOKYO: Japanese share prices closed up 1.68 per cent, bouncing off a near five-month low on a positive lead from Wall Street, a drop in oil prices and a weaker yen, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index gained 212.62 points to close at 12,878.66. The broader Topix index of all first-section shares rose 22.83 points or 1.88 per cent to 1,239.25.

These are not substantial gains considering such thin volume, Hajime Kitano, chief Japanese equity strategist at JPMorgan, told Dow Jones Newswires.

HONG KONG: Hong Kong shares closed up 3.5 per cent, dealers said.

The benchmark Hang Seng Index surged 712.73 points to 21,104.79. But turnover was light at 55.62 billion Hong Kong dollars (7.13 billion US).

Industrial and Commercial Bank of China gained 4.3 per cent and China Construction Bank jumped 3.69 per cent, following strong first-half results.

Airline Cathay Pacific surged 5.23 per cent and oil refiner Sinopec rose 3.03 per cent as crude oil prices eased.

SYDNEY: Australian shares closed up 1.7 per cent, dealers said.

The benchmark S&P/ASX 200 index rose 83.5 points to 5,014.9 while the broader All Ordinaries gained 79.9 points to close at 5,090.1.

Some 1.14 billion shares worth 4.79 billion Australian dollars (4.1 billion US) changed hands.

SINGAPORE: Singapore share prices closed 0.37 per cent higher, dealers said.

The blue-chip Straits Times Index gained 10.15 points to 2,733.45 on volume of 760 million shares worth 863 million Singapore dollars (609 million US).

KUALA LUMPUR: Malaysian share prices ended 0.6 per cent lower, dealers said.

The Kuala Lumpur Composite Index shed 6.87 points to close at 1,078.73.

Political uncertainty is a strong investor repellent ... until we know where the chips fall, they’re staying on the sidelines, a dealer told Dow Jones Newswires.

JAKARTA: Indonesian shares ended 0.3 per cent higher, dealers said.

The Jakarta Composite Index rose 6.7 points to 2,127.22.

Bank Central Asia leapt 4.3 per cent, Bank Negara rose 0.8 per cent and Bank Damanon finished two per cent higher.

WELLINGTON: New Zealand share prices closed up 0.46 per cent, dealers said.

The benchmark NZX-50 index rose 15.31 points to 3,326.92.

Contact Energy fell 11 cents to 8.31. Fletcher Building rose 11 cents to 7.31.

MUMBAI: Indian shares rose 0.34 per cent, dealers said.

The benchmark 30-share Sensex index rose 48.86 points to 14,450.35.

Lower oil saw the markets open strong but it shed most gains on profit-booking and subdued European markets, said a dealer at brokerage ICICI Securities.—AFP