By V. Phani Kumar

Asian markets bounced Monday, as automakers like Toyota Motor Corp. and Hyundai Motor Co. jumped to recoup losses from the previous session, after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

Japan's Nikkei 225 Average, which slumped 5.6% Friday, soared 4% to 8,561.22, while the broader Topix index gained 3.4% to 840.78.

The jump came even after Bank of Japan's tankan survey showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Australia's S&P/ASX 200 rose 3.5% to 3,633 and South Korea's Kospi jumped 3.5% to 1,141.87, while New Zealand's NZX 50 index rose 0.8% to 2,697.17.

Shares of Toyota (TM) gained 3.4% and Honda Motor Co. (HMC) rose 5.7% in Tokyo, while Hyundai (HYMLF) added 6% in Seoul.

The advance came after the U.S. Treasury Department said it stands ready to make funds available to automakers until lawmakers have time to consider a long-term rescue package next year.

Auto stocks tumbled in Asian markets Friday, with some including Toyota and Honda plunging more than 10% in Tokyo trading, after a $14 billion loan package proposal to the Big Three automakers fell apart in U.S. Senate.

Toyota's gains Monday came even as the Nikkei business daily reported Sunday that the auto giant plans to cut capital expenditure because of falling sales and a weak global economic condition.

Resource stocks jumped as January crude-oil prices rose as much as 91 cents to $47.19 a barrel in electronic trading, after gaining $1.70 Friday to end at $46.28 a barrel on the New York Mercantile Exchange.

Shares of BHP Billiton (BHP) jumped 8.7% and Woodside Petroleum (WOPEY) rose 6.5% in Sydney, while Inpex Corp. added 2.1% in Tokyo.

In Asian currency trading, the U.S. dollar bought 90.97 yen, compared with 91.35 yen late Friday.