Okay how can I answer this..?
If you asked "Are there Generation II Pokemon in the Kanto Region?" No, there are not.
If you asked "Does Generation II of Pokemon take place in the Kanto Region?" Yes and no. The first half of the game takes place in Johto, but the second half IS in Kanto, where you can fight their gym leaders.
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There are 5 regions. Generation I: Kanto Generation II: Johto Generation III: Hoenn Generation IV: Sinnoh Generation V: Unova
Shiny Pokemon weren't invented until Generation II of Pokemon. So there is no shiny Pokemon in Pokemon Yellow!
You can get it only by trading from a II. or IV. Generation game or from Emerald.
Gen. I For Kanto region follow this link: http://bulbapedia.bulbagarden.net/wiki/Kanto_Dex Gen. II For Johto region click on this link: http://bulbapedia.bulbagarden.net/wiki/Johto_Dex Gen III For Hoenn region click on this link: http://bulbapedia.bulbagarden.net/wiki/Hoenn_Dex Gen. IV For Sinnoh region follow this link: http://bulbapedia.bulbagarden.net/wiki/Sinnoh_Dex Hope this helps
In Generation I (Red, Blue and Yellow), TM12 is Water Gun. TM12 is located at Mt. Moon. TM12 is Sweet Scent in Generation II, and from Generation III on, it is Taunt.