(RTTNews) - Asian stock markets are trading mostly higher on Thursday, following the broadly positive cues overnight from Wall Street, on a surge crude oil prices to eleven-year highs and a rebound by U.S. treasury yields. Traders are also optimistic amid the ongoing talks to diffuse the Russia-Ukraine crisis. Asian markets closed mostly lower on Wednesday.
Also, Federal Reserve Chair Jerome Powell told the House Financial Services Committee the Fed still believes it will be appropriate to raise interest rates later this month, citing inflation well above 2 percent and a strong labor market.
The likely increase in interest rates comes even though Powell acknowledged that the Russia-Ukraine conflict has introduced significant uncertainty for the U.S. economic outlook.
The Australian stock market is significantly higher on Thursday, extending the gains in the previous four sessions, with the benchmark S&P/ASX 200 below the 7,200 level, following the broadly positive cues overnight from Wall Street, with energy stocks jumping amid a spike in crude oil prices at eleven-year highs. Traders also remain optimistic amid the ongoing talks to diffuse the Russia-Ukraine crisis.
The benchmark S&P/ASX 200 Index is gaining 51.50 points or 0.72 percent 7,168.20, after touching a high of 7,198.10 earlier. The broader All Ordinaries Index is up 58.80 points or 0.79 percent to 7,465.10. Australian markets ended modestly higher on Tuesday.
Among major miners, BHP Group and Mineral Resources are gaining more than 3 percent each, while OZ Minerals is adding almost 4 percent, Fortescue Metals is up more than 1 percent and Rio Tinto is rising more than 2 percent.
Oil stocks are higher. Santos is gaining more than 3 percent, Origin Energy is adding 3.5 percent, Beach Energy is surging almost 5 percent and Woodside Petroleum is up almost 3 percent.
Among the big four banks, Commonwealth Bank and National Australia Bank are edging up 0.4 percent each, while ANZ Banking is adding almost 1 percent. Westpac is flat. In the tech space, Appen is gaining more than 4 percent and WiseTech Global is adding almost 2 percent, while Block is losing almost 3 percent, Zip is down almost 2 percent and Xero is declining more than 1 percent. Gold miners are mixed. Northern Star Resources is edging down 0.4 percent, Newcrest Mining is losing almost 1 percent and Evolution Mining is edging down 0.1 percent, while Gold Road Resources is gaining more than 2 percent and Resolute Mining is adding almost 1 percent.
In economic news, the services sector in Australia bounced up into expansion territory in February, the latest survey from Markit Economics showed on Thursday with a services PMI score of 57.4. That's up from 46.6 in January, and it moves back above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the composite index rose to 56.6 in February from 46.7 in January.
The total number of building permits issued in Australia plunged a seasonally adjusted 27.9 percent on month in January, the Australian Bureau of Statistics said on Thursday - coming in at 12,916. That was well shy of expectations for a decline of 3.5 percent following the 8.2 percent increase in December. On a yearly basis, total dwelling permits shed 24.1 percent, private sector houses declined 29.0 percent and dwellings excluding houses fell 8.5 percent.
The ABS also said Australia posted a seasonally adjusted merchandise trade surplus of A$12.891 billion in January, beating expectations for a surplus of A$9.05 billion and up from A$8.356 billion in December. Exports were up 8.0 percent on month or A$3.487 billion to A$49.251 billion, while imports fell 2 percent on month or A$581 million to A$36.359 billion.
In the currency market, the Aussie dollar is trading at $0.729 on Thursday.
The Japanese stock market is modestly higher on Thursday, recouping some of the losses in the previous session, with the benchmark Nikkei 225 moving above the 26,500 level, following the broadly positive cues overnight from Wall Street, as most sectors rebounded after the recent sell-off amid the escalation of the Russia-Ukraine crisis.
Meanwhile, traders continue to be concerned about the domestic new coronavirus infections, though on a steady decline and off record highs. The government is set to extend its COVID-19 quasi-emergency measures for at least 14 prefectures, including Tokyo, Osaka and Aichi, until March 21. Currently, 31 of the country's 47 prefectures are in the quasi-emergency stage, which is scheduled to expire Sunday.
The benchmark Nikkei 225 Index closed the morning session at 26,608.21, up 215.18 points or 0.82 percent, after touching a high of 26,704.85 earlier. Japanese shares ended sharply lower on Wednesday.
Market heavyweight SoftBank Group is losing almost 1 percent, while Uniqlo operator Fast Retailing is edging up 0.2 percent. Among automakers, Toyota and Honda are gaining more than 1 percent each. In the tech space, Advantest is flat, while Screen Holdings is edging up 0.2 percent and Tokyo Electron is gaining almost 1 percent.
In the banking sector, Mizuho Financial, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are gaining more than 3 percent each.
The major exporters are higher. Sony is gaining more than 1 percent and Canon is adding almost 2 percent, while Mitsubishi Electric and Panasonic are up almost 1 percent each. Among the other major gainers, Mazda Motor is gaining almost 6 percent, while Toho Zinc and Idemitsu Kosan are adding more than 5 percent each. Isuzu Motors, Mitsubishi Motors and Ricoh are up almost 5 percent each, while Dai-ichi Life Holdings is rising more than 4 percent. Komatsu, Pacific Metals, Tokyo Electric Power, Isetan Mitsukoshi, Mitsui, Marubeni and Sojitz are all advancing almost 4 percent each.
Conversely, there are no major losers.
In economic news, the services sector in Japan continued to contract in February, and at an accelerate rate, the latest survey from Jibun Bank showed on Thursday with a services PMI score of 44.2. That's down from 47.6 in January, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the composite index fell to 45.8 in February from 49.9 in January.
In the currency market, the U.S. dollar is trading in the higher 115 yen-range on Thursday.
Elsewhere in Asia, South Korea is surging 1.6 percent and New Zealand is gaining 1.1 percent, while China, Hong Kong, Singapore, Malaysia and Taiwan are higher by between 0.2 and 0.7 percent. Indonesia is closed for the Hindu New Year holiday.
On Wall Street, stocks moved sharply higher during trading on Wednesday, offsetting the steep drop seen in the previous session. The major averages all showed substantial moves back to the upside on the day.
The major averages held on to strong gains going into the close. The Dow shot 596.40 points or 1.8 percent at 33,891.35, the Nasdaq jumped 219.56 points or 1.6 percent to 13,752.02 and the S&P 500 spiked 80.28 points or 1.9 percent to 4,386.54.
The major European markets all also moved to the upside on the day. While the German DAX Index advanced by 0.7 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index jumped by 1.4 percent and 1.6 percent, respectively.
Crude oil prices climbed higher on Wednesday, extending gains amid concerns about global crude supplies due to the ongoing Russia-Ukraine conflict and data showing a drop in U.S. crude inventories. West Texas Intermediate Crude oil futures for April ended higher by $7.19 or 7 percent at $110.60, the highest settlement since May 2011.
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