A bout of bargain-buying after recent losses caused by last week's rate hike by the US Federal Reserve combined with gains on Wall Street to send most Asian stocks higher Monday. However, Chinese investors, returning from a week-long Lunar New Year holiday, weighed credit tightening moves from Beijing as stocks moved in and out of the red in early trade. Japan's Nikkei jumped 2.74 percent, or 276.89 points, to 10,400.47 as concerns that had set in Friday following the US Federal Reserve move receded. The market recorded its biggest gain since December 3. Hong Kong was 2.61 percent higher by the break. Sydney closed 1.78 percent, or 82.4 points, higher at 4,717.5. Markets in Asia were hit Friday after the Fed announced it would hike the primary credit rate on emergency loans to banks to 0.75 percent from 0.5 percent. Despite the bank stressing the move did not signal a broader tightening of policy, dealers sold up fearing a drying up of credit. 'Caution prevailed in markets Friday following the Federal Reserve's surprise move to cut its discount rate. But that sense of vigilance has now eased,' said Daiwa Securities Capital Markets equity chief Kazuhiro Takahashi. Seoul closed 2.08 percent, or 33.20 points, higher at 1,627.10, while Singapore rose 0.43 percent in the early afternoon. Investors were given some cheer by a 0.09 percent gain on Wall Street Friday as fears over the Fed's move were soothed by New York Fed President William Dudley, who said it 'is not at all a signal of any imminent tightening'. Among the gainers Monday were resources stocks as crude jumped past 80 dollars a barrel due to a strike at French energy giant Total as well as tensions over Iran's nuclear programme. New York's main futures contract, light sweet crude for delivery in March, was up 36 cents at 80.17 dollars a barrel in afternoon trade. Brent North Sea crude for April delivery gained 40 cents to 78.59. 'It's been excellent with major stocks like the banks up two to three percent and so, too, with the resources sector,' Austock Securities senior client adviser and strategist Michael Heffernan said in Sydney. In Australia BHP Billiton added 2.83 percent and Rio Tinto rose 2.13 percent. The euro firmed to 1.3642 dollars in Tokyo trade from 1.3608 in New York late Friday, and to 125.06 yen from 124.62. The dollar edged up to 91.69 yen from 91.57. Shanghai stocks were flat in the afternoon of the first session back after the holiday, despite Beijing announcing on the last day before the break moves to tighten credit. The People's Bank of China said the deposit reserve ratio -- the minimum amount of money banks must keep in stock -- would be raised by 50 basis points as of February 25, the second reported increase since the start of the year. Taipei, which was also closed last week for the new year holiday, ended up 1.59 percent or 118.20 points at 7,560.04. Hong Kong gold opened at 1,126.50-1,127.50 US dollars an ounce, up from Friday's close of 1,105.00-1,106.00 dollars. In other markets: -- Wellington added 0.73 percent, or 22.67 points, to 3,129.75. Auckland Airport ended up 1.6 percent at 1.88 New Zealand dollars, while Contact Energy rose 1.7 percent to 5.80. -- Manila rose 1.24 percent, or 37.06 points, to 3,015.59. 'Investors are hunting for bargains, looking forward for better growth this year,' said Ron Rodrigo, research head at DBP-Daiwa Securities. Ayala Land added 4.7 percent to 11.25 pesos after projecting stronger sales this year, while Philippine Long Distance Telephone added 1.4 percent to 2,585. -- Dow Jones Newswires contributed to this story -- 