Tokyo - Asian stock markets rebounded Tuesday after gains on Wall Street spurred by the US government's bailout plan to save the banking giant Citigroup Inc.

Japan's benchmark Nikkei 225 Stock Average surged more than 5 per cent on Wall Street's overnight rally and a weaker yen, which increases exporters' overseas earnings.

The Nikkei index soared 413.14 points, or 5.22 per cent, to close at 8,323.93.

The broader Topix index of all first-section issues was also up 3.6 per cent at 831.58.

Investors bought a wide range of issues after a three-day weekend in Tokyo as market sentiment was cheered by Wall Street's rises after the US government announced the rescue plan for Citigroup with guarantees against massive losses on the bank's 306 billion dollars in mortgage-related assets.

Hong Kong's Hang Seng Index was trading 3.82 per cent higher at 12,933.78 as Australia's ASX 200 Index rose 5.7 per cent to close at 3,623 as increases were across the board with big miners particularly benefiting after a rise in commodity prices.

Taiwan's Taiex rose 2.55 per cent to close at 4,266.49 with analysts pointing to the Citigroup bailout and US president-elect Barack Obama's announcement of his economic team, which is to begin work with him in January.

"Obama's economic team is mulling a stimulus package to tackle the recession and the decision to rescue the ailing Citigroup caused the US stocks to rally Monday," said Chiu Hsin-lin, executive vice president of the Industries Bank of Taiwan Securities. "As Asian stocks are closely linked to US stocks, all major Asian stocks surged today."

On other markets in the region, South Korea's Kospi was up 1.36 per cent, Singapore's Straits Times Index was up 2.67 per cent and India's markets also opened with gains - the Sensex up 1.89 per cent and the Nifty rising 2.2 per cent.

Stocks in mainland China fell, however, on a day when the IMF lowered its economic forecast for the country from 9.2 per cent to 7.5 per cent. The Shanghai Composite Index fell 0.63 per cent and the Shenzhen Composite Index was down 1.89 per cent.

The New Zealand stock market rallied after falling for more than a week with analysts saying investors did some bargain hunting, apparently buoyed by the Citigroup rescue.

The benchmark NZX-50 index closed up 2.31 per cent at 2634.88.

Philippine share prices soared 6.02 per cent as the 30-share composite index of the Philippine Stock Exchange closed at 1,908.18. (dpa)