BoJ deflation statement lifts Nikkei

Asian stocks rose as investors digested the Bank of Japan's decision to ease policy for a second month in a row, while a number of better than expected earnings also lifted sentiment.

Japan's Nikkei climbed 1 per cent to 8,928.29, recovering from Tuesday's 1 per cent sell-off on initial disappointment over the BoJ's asset-purchasing plan.

Risk appetite was reignited by the unusual joint statement from the central bank and the government stressing their commitment to reducing deflation in Japan.

Among active stocks, construction equipment maker Komatsu rallied 3.2 per cent to Y1,672 on receding concerns over its outlook following second-quarter results. Hitachi jumped 3.2 per cent to Y423 after maintaining its full-year profit forecast.

The best gain on the Nikkei came from Fuji Heavy Industries, the maker of Subaru cars, after it lifted its full-year earnings forecast by 22 per cent. The shares gained 6.7 per cent to Y767.

All Nippon Airways was not far behind, up 5.6 per cent to Y169 after the airline beat forecasts with its first-half results.

There is growing confidence in the global economic recovery, analysts said. But investors awaiting a series of key economic data with China's manufacturing data for October due on Thursday and the key US jobs report which, despite hurricane Sandy, was still expected to be released on Friday.

Australia's S&P/ASX 200 gained 0.7 per cent to 4,517 as higher metal prices boosted miners.

Medusa Mining, the gold exploration and mining group, jumped 8.5 per cent to A$6.10 after publishing a market pleasing third-quarter activity report following Tuesday's close.

Third-quarter results from rival gold miner OceanaGold also proved a boost and the shares gained 4.7 per cent to A$3.34.

Hong Kong's Hang Seng index added 1 per cent to 21,641.82, ending a three-day losing streak, as major state-run companies announced earnings.

Industrial and Commercial Bank of China rose 2 per cent to HK5.13 after China's largest lender by assets posted stronger than expected results, but Bank of Communications lost 2 per cent to HK$5.55 after reporting a smaller than expected increase in net profit.

PetroChina slid 2 per cent to HK$10.56 in Hong Kong, and 0.7 per cent to Rmb8.68 in Shanghai after third-quarter net profit dropped 33 per cent from a year earlier. The Shanghai Composite Index ended 0.3 per cent higher at 2,068.9.