Hong Kong - Hong Kong shares began the month in upbeat fashion Monday, recovering the losses sustained Friday at the end of one of the Hang Seng Index's most volatile ever weeks.

The blue-chip climbed 357.7 points, or 2.61 per cent, to close the day at 14,344.37 points after rising above 5 per cent earlier in the day. Turnover was 52.1 billion Hong Kong dollars (6.72 billion US dollars).

Monday's gains were led by Chinese banks after China's central bank indicated that the government had eased lending restrictions that have been restricting credit.

The Hang Seng Index last month had its worst monthly fall for more than 10 years and last week saw its biggest one-day decline for 11 years. The index ended October with a further 2.5 per cent fall Friday. (dpa)