Stocks surge over 3% on stimulus hopes

China's stock market surged yesterday, far outperforming weak overseas markets, because of hopes for a major boost to the economy from fiscal spending and monetary easing.

The Shanghai Composite Index ended up 3.68 percent at a three-week closing high of 1,927.613 points, off the day's high of 1942.897. It shrugged off a more than 5 percent tumble by Hong Kong's Hang Seng Index, which was hit by concern over the global financial crisis and economic slowdown.

Turnover in Shanghai A shares ballooned to 77.9 billion yuan, a six-week high, from Wednesday's 40.9 billion.