Asian markets headed higher on hopes of more stimulus in Europe after closing down on Monday on news of a recession in Japan.Japan’s Nikkei 225 was up 1.8% to 17,271.53, following Monday’s fall – the biggest one day drop since August.

Confidence was boosted by comments from European Central Bank (ECB) President Mario Draghi, who said the ECB was ready to provide more stimulus.

Shares in Hong Kong were up 0.3% with the Hang Seng index at 23,867.19.

On the mainland, the Shanghai Composite was flat at 2,472.71 after data showed that average new home prices in China’s 70 major cities fell 2.6% in October from a year earlier.

That marked the second consecutive month of an annual fall.

In Australia, the benchmark S&P/ASX 200 index was down 0.3% to 5,398.70 after closing at its lowest level since last month at 5,412.5.

South Korean shares were up 1.05%, with the Kospi at 1,964.05 points.

The dollar traded at 116.77 yen, near a seven-year low of 117.06 hit after Monday’s surprising economic growth data.