By Daniel Hunter

An unexpected rate cut by China's central bank on Friday has seen share prices surge today (Monday) as investors cheered the cut.

Asian shares benefited from the interest rate cut as there are fresh hopes for further action to combat a slowing economy.

The Hang Seng index was up 2% at 23,893.94 on news of the rate cut, whilst on the mainland, the benchmark Shanghai Composite was also higher 2.1% at 2,535.75 points - hitting a three-year high.

South Korean shares climbed to a seven-week high, boosted by China's rate cut. China is the country's largest trading partner.

The benchmark Kospi closed up 0.7% at 1,978.54.

Growth-sensitive shipbuilders and petrochemicals outperformed the broader market.

Hyundai Heavy Industries shares rose 5.6%, while LG Chem was 6.3% higher.

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