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.

Japan’s newest effort, unveiled Friday, calls for 15 trillion yen ($150 billion) in government spending and aims to arrest an economic slide caused by the unprecedented drop in global demand. The world’s second-largest economy is struggling through its most painful recession since World War II.

The move is part of a worldwide effort by governments to restore growth. China’s stimulus measures have become a major source of optimism among investors in Asia.

News that Chinese bank lending surged last month reinforced a belief that Beijing’s massive government spending and easier fiscal policies will lead consumers and businesses to sink more money into the economy and help China stage a quicker recovery. Read the rest of this entry »