Asian stocks finished mostly higher on Thursday after oil prices hit six-week high and the Bank of Japan kept its lavish monetary stimulus intact, as widely expected.
The European Central Bank reviews its monetary policy later today, with investors looking for any hints that it could start to remove some of its extraordinary levels of support for the euro zone economy.
The yen weakened and oil prices held steady after climbing nearly 2 percent overnight on data showing another big weekly decline in U.S. crude oil and gasoline stockpiles, while gold edged lower ahead of ECB rate decision.
Chinese shares rose for a third straight session on expectations of solid earnings from cyclical sectors such as mining and steel. The benchmark Shanghai Composite index gained 13.89 points or 0.43 percent to finish at 3,244.86 while Hong Kong's Hang Seng index was up 73 points or 0.27 percent at 26,747 in late trade.
Japanese shares rose as the yen weakened following the Bank of Japan's decision to leave its monetary policy on hold. Investor sentiment was also buoyed by upbeat trade data pointing to sustained economic recovery. Japan's trade balance returned to surplus in June, though the net balance came in below expectations.
The Nikkei average closed 123.73 points or 0.62 percent higher at 20,144.59 while the broader Topix index rose 0.69 percent to 1,633.01, its highest level since August 2015. While exporters and energy stocks rose, banks ended on a mixed note. Toshiba shares fluctuated before closing 0.6 percent higher.
Australian shares extended gains from the previous session as banks continued to rally and data showed the country's jobless rate held steady at 5.6 percent in June amid a remarkable comeback in full-time jobs. The benchmark S&P/ASX 200 index rose 29.40 points or 0.51 percent to 5,761.50 while the broader All Ordinaries index ended up 26.30 points or 0.46 percent at 5,805.70.
The big four banks climbed 1-3 percent to extend Wednesday's gains after the bank regulator outlined its new "capital adequacy" targets, which weren't as tough as initially feared.
Oil and gas major Santos soared 8.3 percent after lifting its full year production and sales guidance. Diversified miner South32 dropped 1.8 percent after its fourth-quarter coking coal production slumped 32 percent from a year earlier.
Department store operator Myer Holdings plunged 9.8 percent after cutting its profit guidance. Embattled infant formula maker Bellamy's Australia lost 5 percent as shares resumed trading after being in a trading halt for nearly two weeks.
Seoul stocks hit fresh record highs on expectations of solid second-quarter earnings results. The benchmark Kospi rose 11.90 points or 0.49 percent to 2,441.84, led by large-cap stocks such as Samsung Electronics, Posco and SK Innovation.
New Zealand shares fell notably amid profit taking after the benchmark index hit another record high the previous day.
The S&P/NZX 50 index dropped 60.31 points or 0.78 percent to 7,672.44, led down by Fletcher Building after it issued a profit warning and announced the departure of chief executive Mark Adamson. The company's shares slumped 6.2 percent.
Indonesia's Jakarta Composite index was moving up 0.2 percent ahead of interest-rate decision from the Bank of Indonesia.
Taiwanese shares were little changed and Singapore's Straits Times index was losing 0.8 percent, while India's Sensex and Malaysia's KLSE Composite index were down around 0.1 percent each.
Overnight, the major U.S. averages rose between 0.3 percent and 0.6 percent to hit fresh record highs, with sentiment underpinned by rising oil prices, better-than-expected corporate earnings and upbeat housing data.
For comments and feedback contact: editorial@rttnews.com
Market Analysis