Asian stocks rise on new Japan stimulus

HONG KONG (AP) – Asian markets gained more ground Monday as Japan's new $150 billion stimulus plan and upbeat news about Chinese bank lending boosted hopes for recovery in the region's major economies.

Trade was thinner than normal with many investors still away for a public holiday and several markets closed. A stronger dollar combined with Tokyo's latest measures helped exporters like Mazda and Nissan. Oil prices slipped to near $51 a barrel.

Chinese stocks led the region with Shanghai's main index climbing 2.8 percent to 2,513.70. South Korea's Kospi gained 2.22, or 0.2 percent, to 1,338.26 with car companies especially strong after the government announced almost $400 million in aid for the country's auto industry. Hyundai Motors added 2.2 percent.

Japan's Nikkei 225 stock average fluctuated throughout the day before closing down 39.68 points, or 0.4 percent, to 8,924.43, though the nation's auto giants were higher.

Eslewhere, Taiwan and Singapore stock measures were up 1-2 percent. Hong Kong, India, Thailand, New Zealand and Australia were closed for a public holiday Monday.

Asian-wide free-trade zone

Pattaya, Thailand, (AFP)- Sixteen Asian nations representing nearly half the world's population will step up studies into a free-trade zone stretching from China to Australia.

Asian leaders will throw their support behind efforts to deepen and expand trade ties and reject protectionist measures.

Leaders of the 10-member Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, Australia, India, and New Zealand under the East Asia Summit will ''explore ways and means to increase regional trade.''

The leaders said an East Asia-wide free-trade zone covering ASEAN as well as China, Japan, and South Korea would enhance the free flow of goods, people and capital. ASEAN has signed free-trade pacts with most of its trading partners, but it is pushing for a larger Asia-wide zone where both tariff and non-tariff barriers are torn down.

Economists say establishing an Asia-wide free-trade zone will be challenging and is a long-term project, but that networks of smaller accords could be a foundation to build on.

But some analysts have warned that dividing the world into trade blocs could undermine multilateral talks under the World Trade Organization.