Around the world's markets: Tokyo

STOCKS hit another record high in the wake of Wall Street's record surge overnight. The Nikkei 225 average closed up 195.29 points, or 1.22 per cent, at 16268.11, its highest level since 31 July.

Traders said bargain-hunting and an influx of foreign money allowed the market to digest a bout of profit-taking.

Foreign investors continued to raise their weighting in Japanese stocks, regarded as good value compared with shares in Europe and the US.