HONG KONG (MarketWatch) — Mainland Chinese and Hong Kong stocks posted their strongest performance in more than seven months on Friday after Beijing announced a slate of new infrastructure projects to spur a slowing economy.

Other Asian markets also rallied because of a celebratory mood in global markets after the European Central Bank unveiled an expansive bond-buying plan to stabilize markets, and as investors looked ahead to a U.S. jobs report with optimism.

The Shanghai Composite (000001) surged 3.7% and Hong Kong’s Hang Seng Index (HSI) climbed 3.1%, each recording their best single-day percentage gain since mid-January.

South Korea’s Kospi (SEU) rallied 2.6%, Japan’s Nikkei Stock Average (100000018) rose 2.2%, Taiwan’s Taiex (Y9999) advanced 1.3% and Australia’s S&P/ASX 200 index (XJO) added 0.3%.

Sentiment was bolstered as China authorities pushed out infrastructure projects aimed at providing stimulus to the cooling economy. Read more on China's infrastructure plans.

Credit Agricole strategist Dariusz Kowalczyk said Asian investors would cheer the plans, which include road, water and port projects.

“With outlook for market stability and growth improved more decisively than expected, we expect a clear risk-on mood in Asia,” he said.

Shanghai stocks were also the week’s best performers among major Asian benchmarks, finishing 3.9% higher. The day’s performance helped all the other benchmarks mentioned above finish in the positive, erasing losses recorded earlier in the week.

Cement producers were the day’s star performers, with Anhui Conch Cement Co. (600585), Gansu Qilianshan Cement Group Co. (600720) and Sinchuan Shuangma Cement Co. (000935) each jumping by the day’s 10% limit on Chinese bourses.

U.S. stocks surged to near multi-year highs overnight after ECB President Mario Draghi announced the plan to ease borrowing strain and avert any immediate break-up of the currency bloc. Read more on the U.S. session.

The ECB agreed to unlimited bond purchases from countries who seek financial aid and comply to strict budget rules. Read more on Draghi's bond-buying plan.

Capital Economics strategist Jennifer McKeown said that while the central bank’s actions “could prove crucial ... the unprecedented action that the ECB has taken highlights the seriousness of the euro’s current situation.”

An upbeat private-sector jobs report also brightened sentiment in U.S. trading, one day before the release of the more closely watched monthly nonfarm payrolls report. Read a preview of the August U.S. jobs report.

Stress beginning to show on Singapore's gamblers

Other major movers

Stocks across Asia joined in the global rally.

Europe-exposed exporters climbing in Tokyo, helped further by a drop in the yen overnight, particularly against the euro.

Mazda Motor Corp. (7261) MZDAF, -9.84% jumped 4.5%, Canon Inc. (7751) CAJ, -2.70% climbed 4.6% and Sony Corp. (6758) SNE, +0.25% shot up 5.6%.

Shares of Toyota Motor Corp. (7203) TM, -1.29% added 3.4%, helped further by a Nikkei report that the car maker hopes to double its China sales by 2015. Read more on Toyota's sales ambitions.

Japanese financials were also strong, as Nomura Holdings Inc. (8604) NRSCF, +2.51% NMR, -2.87% rallied 4.5% and Mitsubishi UFJ Financial Group Inc. MTU, (8316) put on 2.5%.

In Hong Kong, heavyweight stock HSBC Holdings PLC (5) HBC, +0.48% (HSBA) rose 2.5%.

AIA Group Ltd.(1299) spiked 6.8% after American International Group Inc. AIG, -1.23% sold a stake worth about $2 billion at a premium. Read more on AIG’s AIA stake sale.

Sharp rises for firms in the key shipbuilding sector led the advance in Seoul, where Daewoo Shipbuilding & Marine Engineering gained 4.7%, and Hyundai Heavy Industries Co. rose 4.6%.

Growth-tied stocks climbed across the region, with steel makers in Japan showing strength, as Nippon Steel Corp. (5401) climbed 8.7% and rival JFE Holdings Inc. (5411) soard 10.7%.

In Sydney, diversified miners Rio Tinto Ltd. (RIO) RIO, -0.46% (RIO) and BHP Billiton Ltd. (BHP) BHP, -2.16% (BLT) rallied 4.4% and 2%, respectively, getting a lift from a solid overnight performance for commodity markets.

Iron-ore producer Fortescue Metals Group Ltd. (FMG) FSUGY, +0.83% recovered some recent losses to rebound 11.5%. The stock still ended the week 6.5% lower.

On the downside, shares of Consolidated Media Holdings Ltd. (CMJ) fell 0.6% after the Australian media investment company said it received revised 1.94 billion Australian dollar ($2 billion) bid from News Corp. (NWS) NWS, -3.57% , less than the offer News Corp. made for the firm in June. News Corp stock rose 1.5%. Read more on News Corp. bid for Consolidated Media.

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