Chinese stocks soared by more than 7 percent Monday on the news that, the State Council decided to stimulate its slowing economy by spending $586 billion before 2010 on Sunday.

The Shanghai Composite stock index closed at 1874.80 points, up 127.09 or 7.27 percent, the largest one-day gain recorded in the past month. The combined turnover climbed to 78.636 billion yuan ($11.52 billion), from Friday's 40.2 billion yuan.

Property, steel and financial shares were among the biggest gainers, although energy firms also advanced, with market heavyweight PetroChina adding 6.7 percent to 11.22 yuan.

Chinese investors had been waiting months for a major spending package, and Beijing had hinted it was likely to deliver one soon.

Beijing's giant stimulus package will bring $586 billion-worth of fiscal spending on railways, airports and other infrastructure, and on social welfare projects.

The massive government spending plan not only buoyed investors in China, but also gave a shot in the arm for all the other major stock bourses in Asia.

China's export-driven economic growth slowed to 9 percent in the third quarter, its lowest level in five years and well below last year's 11.9 percent.

Apart from accelerating and increasing spending, authorities are also loosening credit conditions and cutting taxes, although exact details of the plan have not been disclosed.

Asia investors are now anticipating that China's economy, the world's third largest, will remain on the fast lane, and keep sizzing up, acting as a source of growth for neighboring economies.

Tokyo's Nikkei 225 stock average surged 498.43 points, or 5.8 percent, to 9,081.43, buoyed also by a weakening yen.

Hong Kong stocks jumped 501.20 points, or 3.52 percent, to close at 14,744.63 on Monday, on mainland's massive economic stimulus package and Wall Street's rebound on Friday. Turnover rose to 60.71 billion HK dollars ($7.84 billion) from Friday's 48.8 billion HK dollars ($6.3 billion).

Markets in Australia and South Korea also joined the region's advance.

Asian companies seen as potential beneficiaries of the massive Beijing spending program were among the biggest stock gainers on Monday.

Hitachi Construction Machinery, which generates one-sixth of its sales in China, soared 17 percent in Tokyo. Doosan Heavy Industries & Construction, South Korea's largest power-equipment maker, jumped 14 percent, and Australian mining giant BHP Billiton rose 7.8 percent in Sydney.

China's announcement of the stimulus plan came as top economic officials from 20 leading nations called over the weekend in Brazil for increased government spending to boost the troubled global economy.

China's central bank governor Zhou Xiaochuan said on the occasion that Beijing will probably resort to more reductions in the interest rates before the year-end, in addition to the stimulus spending plan, to ensure its eocnomy to power ahead at no less than 8 percent for 2009.

Oil prices also rose in tandem with the region's markets, with a barrel of light, sweet crude for December delivery gaining $2.39 to $63.43 in Asian trade.

Editor: Yan