Wall Street raced higher early Monday after strong gains in Asian markets as sentiment got a lift from an upbeat report on Chinese manufacturing that raised • hopes for a global economic recovery.

The Dow Jones Industrial Average rallied 179.28 points (2.18 percent) to 8,391.69 at 1525 GMT, adding to gains of 1.68 percent last week and seven weekly increases in the past eight.

The tech-heavy Nasdaq added 28.12 points (1.64

percent) to 1,747.32 while the Standard & Poor's 500 index climbed 18.98 points (2.16 percent) to 896.50.

Analysts at Charles Schwab & Co. said the market action came after "a positive manufacturing report in China, which fueled a strong rally in Asia, is helping improve sentiment on the Street and further the argument that the worst of the global recession may be in the rearview mirror."

The CLSA China Purchasing Managers Index, or PMI, a closely watched

indicator in the world's third-largest economy, rose sharply to 50.1 in April from 44.8 the previous month. It was the first expansion in nine months.

Investors remained concerned about the so-called stress tests of US banks expected later in the week that could reveal which banks may need further shoring up of their capital base.

But Todd Salamone at Schaeffer's Investment Research said he sees a recovery period after a horrific bear market.