Japanese shares jump to seven-year high

Japanese shares continued to rally, jumping to a seven-year high on Tuesday after last week's surprise stimulus move by the country's Central Bank.

The Nikkei 225 index closed up 2.7% at 16,862.47 after being shut for a holiday on Monday.

The level marked the benchmark's highest finish since October 2007. That followed mixed trading on Wall Street where the S and P 500 and the Dow Jones hit intra-day highs before closing lower.

Meanwhile, the yen continued to weaken against the dollar, also touching a seven-year high of 114.21 at one point on Tuesday.

Shares in automaker Honda were up 1.7% despite the news that US authorities have opened a probe into whether the automaker failed to report deaths or injuries involving Takata air bags.

In Greater China, Hong Kong stocks were higher 0.06% on profit-taking with the benchmark Hang Seng Index at 23,930.04 points.

On the mainland, the benchmark Shanghai Composite was flat at 2,430.13, after ending at an over 20-month high of 2,430.03 the previous day.

In South Korea, the benchmark Kospi index closed down 0.9% at 1,935.19 points after data showed that manufacturing activity suffered its worst decline in four months in October. The HSBC - Markit purchasing managers' index (PMI) fell to a seasonally adjusted 48.7 in October from 48.8 in September. A reading above 50 shows expansion in the sector.

Shares of Hyundai Motor fell to their lowest in over four years, down more than 3% after it and affiliate Kia Motors agreed to pay US $350million (£218 million) in penalties to the US government for overstating its fuel mileage figures on vehicles.

Australian shares were higher with focus on the Reserve Bank of Australia's (RBA) decision to leave interest rates at a record low of 2.5%, which was widely expected.

The benchmark S and P and ASX 200 ended up 0.1% at 5,519.9 points with miners and banks making gains.

- BBC