Tokyo closed today up by 5.22 per cent; Seoul was first up 6 per cent but dropped to 3.6 per cent. In Taiwan shares gained 3.7 per cent whilst Singapore was up 3 per cent by morning’s end.

By midday Hong Kong’s exchange had risen by 3.3 per cent. In Shanghai the index was mixed, with gains of just 0.1 per cent by mid-morning.

The rally in global markets was helped after US President-elect Barack Obama promised to jolt the faltering US economy with a stimulus package.

Oil prices retreated around half a dollar to US$53.90 a barrel after soaring more than 9 per cent on Monday when OPEC president Chakib Khelil said a further cut in crude output would be necessary.

The oil-producing cartel meets on Saturday in Cairo for informal talks, though a cut is not expected to be announced until the next full policy meeting in December.