Asia stocks extend gains on proposed US bailout

Hong Kong: Asian markets rose on Monday after the US government proposed a $700 billion plan to solve the world financial crisis by rescuing banks from mortgage debt.

In Japan, the Nikkei 225 index climbed 1.4 per cent to close at 12,090.59 points , while Hong Kong's Hang Seng index rose 1.2 per cent.

In China, the Shanghai Composite Index soared 7.8 per cent on hopes of a turnaround after government steps to stabilize the country's beaten down shares.

Markets in Australia and Taiwan advanced strongly after regulators in both countries issued curbs on short selling, following similar moves in other countries.

Japanese banking giant Mitsubishi UFJ Financial Group Inc. shot up more than 5.2 per cent, while leading Australian firm Macquarie Group Ltd. climbed 5.3 per cent.

In Hong Kong, Industrial & Commercial Bank of China, the country's biggest, was up 2.4 per cent.