Asian stocks rose on Monday amid hopes that a massive U.S. stimulus package would bolster the economy, while the dollar clung near a one-month high against the yen as investor risk aversion waned despite grim U.S. data.
Hong Kong shares opened 1.5 percent higher, heading for a fourth day of gains and their longest winning streak in two months, while Japan's Nikkei average .N225 climbed for a second straight day.
Wall Street rallied broadly on Friday after figures showing U.S. job losses in January were the worst in 34 years, sparking hopes that Congress will act quickly to pass a stimulus package to help the economy.
But the U.S. administration pushed back the announcement of a keenly awaited bank rescue plan until Tuesday from Monday as it pressed lawmakers to settle their differences over the huge stimulus plan.
"Investors picked up exporters for now on short-covering, but it's doubtful if the market will continue to gain," said Takahiko Murai, general manager of equities at Nozomi Securities in Tokyo.
"The market's focus could shift back to the deteriorating state of the economy once it sees the U.S. stimulus plan, which appears to be somewhat going backward, including uncertainty over the establishment of a 'bad bank' scheme."
Squabbling over the U.S. rescue plan was set to continue on Monday, when the Democratic-led Senate votes to end debate on an $827 billion rescue package so it can be passed on Tuesday.
U.S. President Barack Obama has demanded that the bill be on his desk for signing into law by next Monday.
Japan's Nikkei stock average rose 1 percent, with Honda Motor Co (7267.T) and Toyota Motor Corp (7203.T) climbing despite Toyota's forecast of a larger than expected loss on Friday since bad news had been widely anticipated.
But shares in Nomura Holdings Inc (8604.T), Japan's biggest brokerage, sank 10 percent to a 26-year low amid concerns that a plan to issue up to $3.3 billion in new stock to bolster its capital would dilute earnings.
The MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS climbed 0.9 percent.
Hong Kong's Hang Seng .HSI rose 1.1 percent.
COPPER GAINS ON CHINA HOPES
Copper surged more than 8 percent on Friday on hopes for an economic recovery in China, an aggressive rally that bolstered shares of global miners such as Rio Tinto Ltd/Plc (RIO.AX)
