Asia Stocks Close Higher Monday

Updated from 12:48 a.m. EDT

Asia stocks closed to the upside Monday, with South Korea's benchmark Kospi index rising on the government's announcement of a $130 billion rescue package for the financial system, while shares in Europe also were showing gains.

Japan's 225 stock average finished 3.6% higher to 9005.59. Panasonic rose on a report in the Nikkei business daily that the electronics maker is likely to exceed first-half earnings guidance. Hong Kong's Hang Seng rose 5.3%, while the S&P/ASX 200 index in Australia closed up 4.3%.

The benchmark Kospi in South Korea rose 2.3%, as the government said Sunday it would move to set aside $30 billion for banks and guarantee $100 billion of lenders' foreign currency debts.

In Europe, shares were higher as the Dutch government said Sunday it plans to invest 10 billion euros ($13.4 billion) in ING Groep (ING) to bolster the banking and insurance company's capital position, and a strong-earnings report from telecom equipment maker Ericsson(ERIC).

The FTSE 100 index in London rose 1.5%. The DAX index in Frankfurt also was higher by 1.5%.

Stock futures in the U.S. were indicating a higher opening Monday on Wall Street. Futures on the S&P 500 rose 26.20 points to 959.70, and were 18.04 points above fair value. Nasdaq futures rose 31.75 points to 1342.75, and were 24.94 points above fair value.

On Friday, stocks in New York continued their bumpy ride and closed lower after the release of discouraging housing data and a record low in a consumer sentiment survey.

The Dow Jones Industrial Average ended with a loss of 127.04 points, or 1.4%, at 8852.22, while the S&P 500 slipped 5.88 points, or 0.6%, to 940.55. Nasdaq was off 6.42 points, or 0.4%, at 1711.29.

Stocks futures in the U.S. were higher overnight Monday.

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