HONG KONG, Mar 4 (Internet): Asian stock markets rebounded Wednesday as hopes China would expand measures to revive its economy countered growing signs of economic decay in the US and other major countries. European shares also gained.

The upward move followed heavy selling over the last two days and bucked a fifth-straight day of declines on Wall Street.

In Japan, the Nikkei 225 stock average was up 61.24 points, or 0.90 per cent, to 7,290.96, while Hong Kong's Hang Seng added 297.27, or 2.50 per cent, to 12,331.15. South Korea's Kospi climbed 3.30 per cent to 1,059.26.

In mainland China, Shanghai's index surged 126.68, or 6.10 per cent, to 2,198.11. Analysts said reports the government may consider lowering fees collected on stock trading supplied an additional jolt.

Markets in Singapore, Taiwan and New Zealand also gained. Australia's index shed 1.60 per cent.