Tokyo stocks close at fresh two-year high

Tokyo's benchmark stock index closed at its highest level in more than two years on Tuesday, as strong manufacturing data pointed to a strengthening US economy while a weaker yen boosted Japanese exporters.

The Nikkei 225 index rose 1.05 percent, or 213.29 points, to finish at 20,614.07, its best close since August 2015, while the broader Topix index gained 0.65 percent, or 10.84 points, to 1,684.46.

Tokyo's rise came as all three main US indices pushed to fresh record highs on Monday, with the Dow Jones Industrial Average gaining 0.7 percent to close at 22,557.60, following strong economic data.

US manufacturing activity rose to its highest level in September in 13 years, according to data from the Institute for Supply Management (ISM).

"US ISM figures were pretty good," said Tetsuo Seshimo, a portfolio manager at Saison Asset Management in Tokyo.

"The trend is for Japanese equity gauges to breach recently set highs," he told Bloomberg News, adding that speculation over tighter US monetary policy would weaken the yen against the dollar, a plus for Japanese exporters' profits.

The greenback bought 113.10 yen in Tokyo, up from 112.71 yen in New York.

"The row over Catalonian independence as well as the Las Vegas shooting have not led to moves to shun risks -- their impact will be limited," Okasan Online Securities said in a commentary.

Spain has faced a spiralling crisis with its Catalonia region after a banned independence referendum was marred by shocking scenes of police violence.

In the United States, a lone shooter opened fire with multiple weapons on concert-goers on the famed Las Vegas Strip, killing at least 59 people.

In Tokyo, Nissan shares climbed 1.65 percent to 1,102.5 yen as investors shrugged off news late Monday that the automaker was recalling some 1.2 million cars in Japan that had failed to meet domestic rules on final vehicle inspections.

Other exporters also rose on the back of confidence in the US economy and the yen's fall.

Toyota rose 0.68 percent to 6,747 yen and Honda was up 1.10 percent to end the day at 3,387 yen.

Camera and copier maker Canon tacked on 1.43 percent to finish at 3,877 yen while Hitachi rose 1.20 percent to 812.9 yen.

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