Stocks in Asia were mostly positive on Tuesday as mainland Chinese stocks saw a rebound following supportive comments from a regulator.
The Shanghai composite rose 1.02 percent to close at around 2,568.05 while the Shenzhen composite advanced 0.939 percent to finish at about 1,276.45 after a negative start to the day's trading session.
The moves in mainland Chinese stocks came after the country's securities regulator said it would improve market liquidity and guide more long-term capital into the market. The China Securities Regulatory Commission also said it will encourage share buybacks and mergers and acquisitions by listed firms, reduce unnecessary interference in trading, and create a level playing ground for investors.
"From the currency point of view, this simply means that fiscal policy is, you know, more expansionary. And of course, this raises a bit of concern ... that China's fiscal deficit will widen further. So, again, this adds one more line to the growing list of negatives for the currency," Koon How Heng, head of markets strategy at United Overseas Bank, told CNBC's "Street Signs" in response to the regulator's comments.
As Chinese markets have suffered a rough October, investors have also been closely watching the country's currency. On Tuesday afternoon during Asian trade, the onshore Chinese yuan was at 6.9656 against the greenback, after the People's Bank of China fixed the currency's mid-point at 6.9574 per dollar — which was the lowest guiding level since May 21, 2008, according to Reuters.
Meanwhile, Hong Kong's Hang Seng index slipped 0.71 percent in afternoon trade.