CANBERA (dpa-AFX) - Asian stocks rose on Tuesday as hopes grew of progress towards resolving the U.S.-China trade war and reports suggested that British Prime Minister Boris Johnson has prepared a blueprint for a new Brexit deal to the European Union.
Chinese and Hong Kong markets were closed for the 70th anniversary of the founding of the People's Republic of China.
Japanese shares rose despite the release of weak economic data. The Nikkei average rose 129.40 points, or 0.59 percent, to 21,885.24 while the broader Topix index closed 0.96 percent higher at 1,603.
Japan's manufacturing sector contracted the most in seven months in September as firms reduced production amid weak demand, survey data from IHS Markit showed. The corresponding index dropped to 48.9 from 49.3 in August.
Separately, the manufacturing sector in Japan continued to expand in the third quarter of 2019, albeit at a slower pace, the Bank of Japan's quarterly Tankan survey revealed with a large manufacturing diffusion index score of +5.
That beat forecasts for +1, although it was down from +7 in the three months prior. The outlook came in at +2, exceeding expectations for 0 and also down from +7.
The unemployment rate in Japan came in at a seasonally adjusted 2.2 percent in August, - beneath expectations for 2.3 percent and unchanged from the previous month.
Honda motor, Nissan Motor and Panasonic climbed around 3 percent as the yen weakened amid easing U.S.-China trade tensions.
Apple-related companies gained ground as JP Morgan raised its iPhone volume forecasts for the September and December quarters. Murata Manufacturing advanced 2.8 percent and TDK Corp gained 2.7 percent.
Australian markets rose sharply as the Reserve Bank of Australia reduced its interest rates further as widely expected.
The board of the Reserve Bank of Australia, governed by Philip Lowe, decided to reduce the cash rate by 25 basis points to 0.75 percent, saying an extended period of low interest rates will be required in the country to reach full employment and achieve the inflation target.
Meanwhile, investors shrugged off survey results from IHS Markit showing that Australia's manufacturing sector expanded at a slower pace in September.
The benchmark S&P/ASX 200 jumped 54.50 points, or 0.81 percent, to 6,742.80 while the broader All Ordinaires index ended the session up 52.40 points, or 0.77 percent, at 6,853.
Adelaide Brighton, a manufacturer of cement, lime and dry blended products, rallied 2.3 percent after home prices in the country posted their biggest monthly jump in 2-1/2 years in September.
Retailers Wesfarmers and Woolworths Group rose around 1 percent. Airline Qantas Airways surged 2.4 percent after oil futures plunged overnight, sending U.S. prices to their lowest settlement in a month.
Seoul stocks rose for the second day running as the country's consumer prices declined for the first time on record in September and exports continued to fall, adding pressure on the central bank to ease monetary policy.
Consumer prices fell 0.4 percent year-on-year in September after staying flat in August, a government report showed. The benchmark Kospi gained 9.37 points, or 0.45 percent, to finish at 2,072.42, led by bio and chemical stocks.
Samsung BioLogics soared 5 percent as it won a patent lawsuit against Switzerland-based pharmaceutical giant Lonza.
New Zealand shares gained ground as the Reserve Bank of New Zealand released a report by three independent experts on the proposal to increase the amount of capital banks must hold.
The central bank said its final decision on the proposal would be announced in December. The benchmark S&P/NZX 50 index climbed 71.37 points, or 0.65 percent, to 10,996.99.
U.S. stocks rose overnight after a Treasury Department spokeswoman denied reports the Trump administration is considering delisting Chinese companies from U.S. stock exchanges at this time.
Separately, White House trade adviser Peter Navarro attacked media reports in an interview with CNBC on Monday, claiming 'over half' of a Bloomberg report about potential restrictions was 'highly inaccurate or simply flat-out false.'
The Dow Jones Industrial Average rose 0.4 percent, the tech-heavy Nasdaq Composite gained 0.8 percent and the S&P 500 added half a percent.
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