Japanese shares up ahead of Asian markets

Japan's shares continued to lead Asia higher on Tuesday after last week's surprise stimulus move by the country's central bank. The Nikkei 225 index rose 3.2 per cent to 16,946.33 in morning trade after being closed for a holiday on Monday. That follows mixed trade on Wall Street were the S&P 500 and the Dow Jones hit intra-day highs before closing lower. The yen continued to weaken with the dollar at 113.75 yen after touching a seven-year high of 114.21. In Greater China, Hong Kong stocks fell 0.3 per cent on profit-taking with the benchmark Hang Seng Index at 23,849.72 points. On the mainland, the benchmark Shanghai Composite was down 0.3 per cent to 2,423.50 after ending at an over 20-month high of 2,430.03 the previous day. In South Korea, the benchmark Kospi index was flat at 1,951.78 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. Australian shares were higher with focus on the Reserve Bank of Australia's (RBA) interest rate decision later in the day. The RBA is widely expected to leave rates at a record low of 2.5 per cent, according to BBC.