New York - Wall Street stock indices climbed Thursday despite new government data showing the US economy shrank in the third quarter of 2008.

The 0.3-per-cent contraction in gross domestic product - the largest quarterly decline since the 2001 recession - was less than the 0.5-per-cent drop forecast by economists.

Consumer spending shrunk by 3.1 per cent in the quarter, the largest drop since 1980, as a financial crisis has severely curbed lending in the United States.

Tokyo - Markets across the Asia-Pacific on Thursday saw the roller-coaster ride they have been taking in recent weeks make an upward surge with key markets jumping more than 10 per cent on news of an interest rate cut by the US Federal Reserve.

Japan's benchmark Nikkei 225 Stock Average ended trading up nearly 10 per cent after the US central bank's rate cut as well as boosted profit prospects for Japan's exporters as the yen weakened against the dollar.

Hong Kong - Hong Kong stocks shot up by nearly 13 per cent Thursday to record their second double-digit rise of the week as a cut in interest rates boosted confidence in the market.

The blue-chip Hang Seng index gained 1,627.78 points, or 12.82 per cent, to close the day at 14,329.85 after a 50 point overnight cut in interest rates in the US. Turnover was 75.1 billion Hong Kong dollars (9.68 billion US dollars).

Seoul - Shares surged by a record 12 per cent Thursday on the Seoul stock exchange as a currency swap with the US worth 30 billion dollars and a decreased currency account deficit in South Korea in September boosted investor sentiment.

The local currency spiked 16.5 per cent against the greenback, buoyed by the swap deal and the bullish stock market.

The benchmark Kospi index jumped 115.75 points, or 12 per cent, to close at 1,084.72, its largest ever one-day gain. The index fell more than 20 per cent last week, the biggest loss in two decades.

Advancing issues outpaced decliners 841 to 53.

BJP leader, Kirit Somaiya demanded enquiry into the role of the regulators and the finance ministry in the recent crash in the stock markets in India.

Tokyo - Japan's benchmark Nikkei 225 Stock Average ended Thursday trading up nearly 10 per cent to above the 9,000 level after the US Federal Reserve cut its key interest rate to spur the economy.

The Nikkei surged 817.86 points, or 9.96 per cent, to end at 9,029.76.

The broader Topix index of all first-section issues also jumped 69.05 points, or 8.32 per cent, at 899.37.