Japanese manufacturers' business confidence improved for the first time since August while service-sector mood rose for a second month, according to the Reuters Tankan poll, which also highlighted a challenging outlook amid a patchy economic recovery, Reuters reported. The monthly poll mirrored a similar improvement seen in the third quarter in the Bank of Japan's (BOJ) closely-watched quarterly tankan survey.

The Unification Church’s Japanese branch announced plans Tuesday to set aside a fund up to 10 billion yen ($67 million) to cover possible compensation for those seeking damages they say were caused by the group’s manipulative fundraising tactics, the Associated Press reported. The move is seen as an attempt to allay any suspicion that the group would try to avoid later payouts by hiding assets overseas while a government-requested dissolution order is pending.

Japanese stocks have trounced their Chinese peers this year, but some investors are betting the tide is about to turn, Bloomberg reported. Headwinds are growing for Japanese equities, including deteriorating global growth and concern the era of yen weakness that has bolstered exporters’ earnings may be nearly over as the central bank comes under pressure to tighten policy. Conversely, optimism is building that Beijing’s efforts to bolster the economy and local equity markets will help end a slump that has made Chinese equities among the world’s worst performers this year.