Most Asia Markets Rally as Dealers Return from Holiday

Most Asian markets advanced Tuesday as regional investors returned  from a long holiday weekend, with eyes now on a Federal Reserve meeting and the release of US jobs data later in the week.

Another record close on Wall Street's Nasdaq index provided some early buying impetus, while there was also relief that lawmakers in Washington had finally hammered out a deal to avoid a costly shutdown of the US economy.

However, there was some disappointment in figures last week showing that growth in the US, British and French economies all came in below expectations.

Tokyo ended 0.7 percent higher, with a weaker yen boosting exporters. The greenback is pushing back above 112 yen, having fallen last month on worries about Donald Trump's ability to push through his pro-growth agenda.

Hong Kong was up 0.3 percent higher and Seoul added 0.7 percent by the close, while Wellington, Singapore, Taipei and Manila all posted healthy gains.

However, Shanghai slipped 0.4 percent after official data at the weekend showed the pace of growth in China's factory activity slowed last month. A separate private reading on Tuesday revealed activity at its slowest pace in seven months.

Sydney was 0.1 percent off.

Traders were given a positive lead from Wall Street, where the Nasdaq ended at another record high, while Trump looked to ease tensions with North Korea by saying he would be "honoured" to meet the country's leader Kim Jong-Un under the right circumstances.

Attention turns now to the Fed's latest policy meeting Wednesday. While the central bank is expected to hold off another interest rate rise, its statement will be pored over for clues about plans for the future. 

The gathering will be followed by Friday's release of job creation figures, which will give a better snapshot of the state of the world's top economy.

Asian banking shares were mixed after Trump said in an interview that he was reviewing a possible breakup of large US banks.

He told Bloomberg News he was considering a "21st century" version of the 1933 Glass-Steagall law that separated consumer lending and investment banking and was repealed in 1999 by President Bill Clinton.

"I'm looking at that right now," Trump said. "There's some people that want to go back to the old system, right? So we're going to look at that."

However, the Trump administration has not released details about what an eventual breakup plan might look like. 

In early European trade London, Paris and Frankfurt each added 0.4 percent.

- Key figures at 0820 GMT - Tokyo - Nikkei 225: UP 0.7 percent at 19,445.70 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 24,696.13 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,143.71 (close)

London - FTSE 100: UP 0.4 percent at 7,230.94

Euro/dollar: UP at $1.0913 from $1.0893 at 2030 GMT

Pound/dollar: DOWN at $1.2877 from $1.2953 

Dollar/yen: UP at 112.10 yen from 111.41 yen

Oil - West Texas Intermediate: DOWN 20 cents at $48.64 per barrel

Oil - Brent North Sea: DOWN 16 cents at $51.36

New York - Dow: DOWN 0.2 percent at 20,940.51 (close)