Stocks in Tokyo ended higher on Tuesday on hopes of fresh monetary easing from the Bank of Japan and signs that progress is being made on averting the US 'fiscal cliff'.

The benchmark Nikkei 225 index closed up 94 points at 9,923 in Tokyo while the Hang Seng index fell 18 points at 22,494.

Hops that the incoming Liberal Democratic Party's will push through aggressive monetary encouraged buying among Tokyo heavyweights such as Softbank, Canon and Fast Retailing. Their shares rose 4.7%, 3.4% and 1.7% respectively.

Elsewhere Olympus bounced 6.1% while Sharp continued Monday's rally to tack on a further 8.3%.

Financials also found support in Tokyo with shares of Mitsubishi UFJ Financial and Nomura both moving sharply higher on hopes of monetary easing from the BOJ.

Among utilities Tokyo Electric Power enjoyed another strong session, rising 17% after Monday's 33% surge on hopes that the new government will restart the country's idle nuclear reactors.

Fellow power firms Kyushu Electric Power and Kansai Electric Power however traded lower.

In Hong Kong shares of AIA Group retreated 3.2% after its former owner American Insurance Group sold its remaining stake in the insurance group.

Property stocks were knocked lower after data showed house prices in China's 70 biggest cities rose in November, making it less likely that Beijing will ease property market restrictions.

Shares of China Overseas Land fell 2% in Hong Kong.


CJ

Related share prices