Asian stock markets advanced on Monday, with South Korean shares gaining for the first time in four days, as the government moved to shore up the country's banking system.

Japan's Nikkei 225 stock average rose almost 3.6 percent on Monday to close at 9,005.59, and the Hang Seng Index in Hong Kong surged 4.3 percent to 15,185.91.

In South Korea, the Kospi climbed about 2.3 percent after the government said it would provide up to $100 billion to secure banks' maturing foreign currency for three years.

Mainland China shares, meanwhile, recovered early losses to edge higher in spite of new government figures showing the country's economic growth eased to 9 percent in the third quarter of this year - its slowest in more than five years.

The rise across Asia came despite growing fears of a global recession and amid signs of greater coordination between world governments aimed at easing the credit crunch and market gyrations that have wrought havoc on global markets for weeks.

The crisis led on Sunday to the ouster of the top brass at a top bank in France and prompted the Dutch government to bail out another in the Netherlands.

The top echelon of France's Caisse d'Epargne quit at an emergency meeting on Sunday, the latest casualties of the ongoing crisis.

The chairman, director-general and finance director of the French bank quit over a 600 million euro ($800 million) loss in a derivatives trading "incident" on October 6 as world share markets were crashing over the global finance crisis.

South Korea, meanwhile, offered up to $100 billion in guarantees for bank borrowing in foreign currencies and put a 30 billion dollar injection into the bank system, in a move hailed by International Monetary Fund managing director Dominique Strauss-Kahn as likely to foster confidence.

International response

Meanwhile, world leaders lined up a series of summits on reforming global finance. The summits, announced following talks between US President George W Bush and French President Nicolas Sarkozy, are the latest fruit of efforts to coordinate an international response to the crisis.

But there were already signs of rival visions for the summits, with European leaders pushing for a radical overhaul of the global financial architecture while Bush said that the foundations must be preserved.

"As we make the regulatory and institutional changes necessary to avoid a repeat of this crisis," Bush told Sarkozy and EU commission chief Jose Manuel Barroso, "it is essential that we preserve the foundations of democratic capitalism - the commitment to free markets, free enterprise and free trade.

"We must resist the dangerous temptation of economic isolationism and continue the policies of open markets that have lifted standards of living and helped millions of people escape poverty around the world," he added.

Bush's remarks after the talks at his Camp David retreat in Maryland were markedly different from those from Sarkozy, who has been urging a broad overhaul of the so-called Bretton Woods system of international finance and commerce put in place during World War II.

"Once calm has been restored, we must avoid at all costs that those who have led us to where we are today should be allowed to do so once again," said Sarkozy.

Although no date has yet been set, the first of the summits will likely be held next month, after the presidential election on November 4, White House spokesman Tony Fratto said.

Critics say the institutions sketched out after the Great Depression - the World Bank and International Monetary Fund - are ill-equipped to deal with the globalized economy and the complexities of modern finance.

The calls for fundamental reforms by Sarkozy, current head of the EU, received backing from Spain's Prime Minister Jose Luis Rodriguez Zapatero.

"There has to be a stricter regulation and international supervision, at least at the level of the European Union," the Socialist leader was quoted as saying in the newspaper Publico.

Seventy francophone nations and regional governments, at a summit in Canada, also backed calls for revamping the banking system, insisting that China, India, South Africa, Mexico, and Brazil should participate in the talks, not just the richest industrialized nations.

The crisis erupted over the collapse of the market in high-risk subprime US home loans last year. The loans, repackaged as derivatives, had been resold to investors and banks around the world.

Widespread defaults set off a chain reaction through the financial system, eventually leaving banks short of cash and hesitant to make the interbank loans essential to the system's smooth functioning.

The crisis has been compounded by an economic slowdown and fears of recession -- broadly defined as when economies are in a decline for two consecutive quarters.

With figures expected to show later this week that Britain is on the brink of recession, its finance minister said he planned to boost public spending.

"You will see us switching our spending priorities to areas which make a difference," Alistair Darling told the Sunday Telegraph. "This is a time when you have to support the economy," he added.