Markets were cheered by US president-elect Barack Obama's plans to boost spending and also took a cue from Wall Street's last-minute rally on Friday, on hopes that the grim job data in the world's largest economy would prompt further interest rate cuts to stave off a deeper recession.

Hong Kong and Chinese shares also benefited from expectations that Chinese economic policymakers, convening to set a broad agenda for the coming year, would focus on specific policy measures to help the economy.

The Hang Seng benefited from expectations in both economies and climbed 8.2 per cent to 14,985.92, taking the index to its highest since October 21 and its biggest daily gain since October 31. The sub-index of mainland Chinese shares listed in Hong Kong gained 8.9 per cent to 8,089.50.