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Japan's Nikkei share index hits seven-year high



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Nikkei 225 Index

Last Updated at 22 Sep 2017, 06:45 GMT Nikkei 225 one month chart
value change %
20296.45 -
-0.51
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-0.25

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&P 500 and the Dow Jones hit intraday highs before closing lower.

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

Shares in carmaker 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.

Investors will watch shares in Nissan on Wednesday after the firm reported a net profit of 237bn yen ($2.08bn; £1.3bn) for the six months to September, up 25% from the same period last year.

Rest of Asia

In Greater China, Hong Kong's benchmark Hang Seng Index closed down 0.3% at 23,930.04 points following Wall Street's lead on Monday and with investors taking profits after last week's big gains.

On the mainland, the benchmark Shanghai Composite closed up 0.03% at 2,430.74 points.

In South Korea, the benchmark Kospi index closed down 0.9% at 1,935.19 points after a survey indicated 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 below 50 indicates the sector is contracting.

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

Australian shares were higher. The Reserve Bank of Australia kept interest rates at a record low of 2.5%, as had been expected.

Australia's benchmark S&P/ASX 200 index ended up 0.1% at 5,519.9 points, with miners and banks making gains.

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