Investing.com - Tokyo stocks surged Tuesday, bringing gains to more than 8% since the Bank of Japan's surprise decision Friday to expand easing measures.
The Nikkei Stock 225 jumped to a fresh seven-year high and is now up 3.9% for the year after breaking into positive territory Friday. It traded at its highest level since October 2007
Most other Asian markets declined. Korea's Kospi fell 0.1% to 1952.05. The index is down 3.0% for the year, the worst performing among major indexes in the region.
Hyundai Motor (KS:005380) Co. was down 4.1% and KIA Motors (KS:000270) was down 1.4%, after the firms agreed to pay a combined $100 million in civil fine and forfeit regulatory credits valued at $200 million to resolve charges that they overstated fuel economy claims for their vehicles sold in the U.S.
The Shanghai Composite Index was down 0.4% and the Hang Seng Index was down 0.3%, after two measures of Chinese business activity earlier in the week revealed patches of softness with some modest signs of strength in China's economy in October.
Overnight, U.S. stocks edged lower as investors applauded an upbeat factory gauge and sold energy companies on concerns that oil prices will stay low for the foreseeable future.
The Institute of Supply Management reported earlier that its manufacturing purchasing managers' index rose to 59.0 in October from 56.6 in September. Analysts had expected the index to decline to 56.2 in October, and the surprise uptick drew applause in Wall Street earlier on hopes for more robust top and bottom lines to come with an improving economy.
Still, lower oil prices pressured down energy and energy-related stocks.
Despite the otherwise bullish effects upbeat U.S. data would have on oil due to prospects for rising demand for fuel and energy, a stronger dollar continues to punish the commodity as the economy improves.
A stronger greenback makes oil a less attractive commodity on dollar-denominated exchanges, especially in the eyes of investors holding other currencies.
Saudi Arabia on Monday cut its selling price for oil to the U.S., suggesting that the kingdom is trying to compete with U.S. shale oil.
Saudi Arabia raised the prices for its oil in other locations, including Asia, where the country has cut its prices for four straight months.
When the Saudis sharply cut their November selling prices at the beginning of October, oil prices weakened, as the market interpreted the lower prices as a signal that Saudi Arabia was more concerned with maintaining market share than with cutting production to keep prices high.