Asian Market Update

Asian markets rose in thin trade Monday ahead of the festive season, tracking cues from Wall Street where stocks surged in a Federal Reserve-fuelled "Santa Claus rally" last week.

Sydney surged 1.49 per cent, Hong Kong gained 1.18 per cent, Shanghai climbed 1.26 per cent and Seoul added 0.28 per cent.

Tokyo was flat by the break after the Bank of Japan gave a more upbeat view of the world's number three economy on Friday, saying exports were showing signs of picking up while factory output has started to "bottom out".

Trading is expected to be thin this week at the start of the holiday season, with many traders away for Christmas and New Year celebrations.