Japanese stocks led world markets higher Tuesday after the country's central bank unexpectedly announced that it is cutting its main interest rate to 0% to .1%.
Stocks in Japan reversed course upon the Bank of Japan’s news of the interest cut which was coupled with the BOJ stating that it may be setting up a 5 trillion yen fund in order to buy government bonds and other assets in an attempt to help the faltering Japanese economy.
Japan's Nikkei closed down 23.17 points, or .25%, to 9,381.06.
Financial stocks were strong as shares of Mizuho Financial Group surged 3.57% and Mitsubishi UFJ Financial Group closed in the green; up 2.36%.
Exporters rallied as well with Elpida Memory Inc. closing up 3.16% and Canon recovering from early losses to end up 0.38%.
The Shanghai Stock Exchange was closed Tuesday in observance of a week-long holiday.
Hong Kong shares closed at their highest level in 2010 on Tuesday after an up-and-down session that saw insurance firms rise after AIA set the price range for its Hong Kong IPO and developers dropped as a result of some profits being secured after a recent run-up.
The Hang Seng closed up; rising .09% to 22,639.14.
Elsewhere, the smaller markets were mixed:
South Korea's Kospi dropped .02% to 1,878.94.
Australia's S&P/ASX 200 closed down .398% to 4,606.900.
India's Sensex fell .33%.
Malaysia's Kuala Lumpur Composite Index climbed 9.92 points to 1,472.19.
Indonesia's Jakarta Composite Index was a winner again as it rose .62%.
Shenzhen Composite gained 1.681% to 1,169.019. (Data from September 30, 2010. Exchange closed for holiday today.)
Taiwan's Taiex fell .55%.
Singapore's Straits Times Index climbed .16%.
New Zealand's NZX 50 closed down .33%.
Philippine shares were down .112%.
Shares in Thailand climbed .525%.
