Hong Kong shares end 1.16% higher

Hong Kong shares have closed up 1.16 per cent higher, a four-and-a-half month high, after Japan's central bank followed its US and European counterparts in announcing stimulus moves.

The benchmark Hang Seng Index gained 239.98 points to 20,841.91 on turnover of HK$63.67 billion ($A7.89 billion), ending at its highest close since May 4.

The Bank of Japan (BoJ) said after a two-day policy meeting it would boost an asset-purchasing fund by Y10 trillion ($A121.74 billion) to 80 trillion yen while also keeping interest rates between zero and 0.1 per cent.

The move will see the bank provide more yen liquidity to markets as it purchases government and corporate bonds, and commercial paper.

Pressure had been on BoJ policymakers to follow the Europeans and Americans by announcing new plans to pump cash into the ailing economy.

The European Central Bank (ECB) this month sent equities soaring after saying it would buy unlimited amounts of debt from under-pressure eurozone members to lower their borrowing costs.

That was followed on Thursday by the Fed's unveiling of a third round of bond-buying, or quantitative easing (QE3), to kick-start jobs growth in the world's biggest economy.

Japan's Finance Minister Jun Azumi welcomed the BoJ decision, saying the bank "took more action than we anticipated" and it would help the economy.

Stocks rallied following the announcement. Zhaojin Mining rose 4.4 per cent to $HK13.64 while Zijin Mining jumped 5.6 per cent to $HK3.19.

Henderson Land climbed 1.7 per cent to $HK54.65 while New World Development rose 2.7 per cent to close at a 52-week high of $HK11.30

Chinese shares closed up 0.40 per cent. The benchmark Shanghai Composite Index increased 8.29 points to 2,067.83 on turnover of 43.6 billion yuan ($A6.63 billion).

Shares of Japan-linked firms snapped a two-day losing streak as anti-Japan protests over a chain of disputed islands eased in China.

Home appliance maker Hefei Rongshida, the joint venture of Japan's Sanyo Electric in China, rose 0.73 per cent to 6.94 yuan.

Dongfeng Automobile, which is controlled by a joint venture of Japan's Nissan, added 0.36 per cent to 2.75 yuan.

Technology firms also rose after China on Tuesday unveiled plans to support its information technology industry.

Computer system developer Bright Oceans Inter-Telecom surged by its 10 per cent daily limit to 6.34 yuan and electronic banking system developer Hangzhou Sunyard System Engineering gained 5.71 per cent to 9.62 yuan.

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