DEBORAH MARCHINI, CNN ANCHOR: Japan's business confidence reaches a level not seen in years. Michelle Han has that story, as well as what affected the trading day in Asia from our studios in Hong Kong. Hello, Michelle.</s>MICHELLE HAN, CNN CORRESPONDENT: Deborah, good morning. Well, Asian markets struggled Tuesday after Nasdaq's plunge overnight, but key bourses ended slightly higher. In Japan, business sentiment is improving gradually. The central bank's quarterly Tankan Report, an index that tracks how Japan Inc. views the corporate environment came in at the high end of market expectations. It's the highest reading in more than three years. Still a rosy Tankan Report didn't pack the punch the markets needed. The benchmark Nikkei average finished flat due to weakness in the U.S. tech shares. And here in Hong Kong, the Hang Seng recovered from early losses and advanced half a percent by the close. One big mover, global banking giant HSBC. A "New York Post" report saying that it is in merger talks with investment powerhouse Merrill Lynch, fueled a nearly three percent gain in the stock, both companies tell CNN that there is absolutely no truth to the rumors. And in Taiwan, it was the government to the rescue. The benchmark TAIEX snapped a five-day losing streak and posted a two percent gain, thanks to injection of state funds worth $16 billion. And that wraps up the trading day here in Asia. Back to you, Deborah.</s>MARCHINI: All right, thanks so much, Michelle.
Japan's Business Confidence Reaches Level Not Seen in Years; Asian Markets Struggle, but Key Bourses End Slightly Higher