Chinese stocks soared by more than 7 percent Monday on the news that, the State Council decided to stimulate its slowing economy by spending $586 billion before 2010 on Sunday.

The Shanghai Composite stock index closed at 1874.80 points, up 127.09 or 7.27 percent, the largest one-day gain recorded in the past month.

Beijing`s giant stimulus package will bring $586 billion-worth of fiscal spending on railways, airports and other infrastructure, and on social welfare projects.

The massive government spending plan not only buoyed investors in China, but also gave a shot in the arm for all the other major stock bourses in Asia.

Asia investors are now anticipating that China`s economy, the world`s third largest, will remain on the fast lane, and keep sizzing up, acting as a source of growth for neighboring economies.

Tokyo`s Nikkei 225 stock average surged 498.43 points, or 5.8 percent, to 9,081.43. Hong Kong`s Hang Seng Index gained 712.56 points, or 5.02 percent, one hour before its closing. Markets in Australia and South Korea also joined the region`s advance.

Asian companies seen as potential beneficiaries of the massive Beijing spending program were among the biggest stock gainers on Monday.

Hitachi Construction Machinery, which generates one-sixth of its sales in China, soared 17 percent in Tokyo. Doosan Heavy Industries & Construction, South Korea`s largest power-equipment maker, jumped 14 percent, and Australian mining giant BHP Billiton rose 7.8 percent in Sydney.