Investing.com - Asian-Pacific shares markets opened in a positive fashion on Thursday, following a mostly higher close of US stocks, led by gains in basic materials shares.
By 11:25 am AEDT (12:25 am GMT), the S&P/ASX 200 added 0.4%, the KOSPI 200 lifted 1.1%, and the Nikkei 225 added 1.7%.
US stocks wrapped up the day on a mostly positive note on Wednesday. The S&P 500 rose by 0.1% to 5,211.49, while the Dow Jones Industrial Average dipped by 0.1% to 39,127.14. The NASDAQ Composite saw a 0.2% increase, closing at 16,277.46.
In the commodities markets, Brent crude oil rose by 0.7% to US$89.52 a barrel. Base metal prices also advanced, with Copper futures jumping 3% to their highest in over 13 months after the latest US economic data showed price pressure easing in March. Aluminium futures gained 2%. The gold futures price rose by $US33.20 or 1.5% to $US2,315 an ounce. Spot gold was trading at record highs near $US2,297 an ounce at the US close. Iron ore futures shed $US2.50
In local bond markets, the yield on Australian 2 Year government bonds was up at 3.75%, while the 10 Year yield also rose to 4.14%. US Treasury notes were mixed, with the 2 Year yield down at 4.67% and the 10 Year yield remaining steady at 4.35%.
Currencies were mixed against the US dollar in European and US trade. The Euro rose from $US1.0762 to $US1.0836 and was near $US1.0830 at the US close. The Aussie dollar lifted from US65.03 cents to US65.69 cents and was near US65.60 cents at the US close. The Japanese yen eased from 151.53 yen per US dollar to JPY151.94 and was near JPY151.70 at the US close.
Global oil prices rose on Wednesday to five-month highs after OPEC+ ministers reaffirmed current supply cuts. However, price gains were capped by a surprise jump in US crude oil inventories. The US Energy Information Administration reported a 3.2 million barrel increase in crude stocks last week. Analysts had expected an over 1.5 million barrel decrease.
Chinese shares closed lower, echoing losses in most regional markets. US-China tensions continue to cast a shadow during a US election year, while the Chinese property sector remains a significant risk, according to HSBC analysts. Tech stocks led the losses in this session. Beijing Kingsoft Office Software shed 5.3% and iFlytek lost 2.3%. Foxconn Industrial Internet slid 4.3%. The benchmark Shanghai Composite Index ended 0.2% lower at 3069.30, the Shenzhen Composite Index fell 0.7%, and the ChiNext Price Index was off by 1.1%.
Hong Kong shares closed 1.2% lower at 16725.10, reflecting Wall Street losses overnight. Doubts about whether inflation has been tamed in the US and scaled-back bets on Fed rate cuts could be weighing on sentiment. Auto and tech-related stocks led the losses. Among carmakers, Li Auto (NASDAQ:LI) slid 5.0%, BYD was down 2.2%, and Geely Automobile slipped 1.9%. Among tech-related stocks, Lenovo fell 3.35%, Xiaomi shed 4.4%, and Sunny Optical lost 2.4%. Meanwhile, gainers include China Hongqiao, which rose 5.25%, and Zijin Mining Group, which added 3.7%. The Hang Seng Tech Index closed 2.3% lower at 3460.87.
Japanese stocks ended lower, pulled down by drops in electronics, machinery, and game stocks amid growing concerns about higher energy costs. Nidec Corp. dropped 2.5%, Mitsubishi Heavy Industries shed 2.6%, and Nintendo lost 4.2%. Fast Retailing declined 3.3% after Uniqlo sales in Japan fell 1.5% year-on-year in March. The Nikkei Stock Average fell 1.0% to 39451.85. Investors are focusing on economic data and their policy implications. The 10-year Japanese government bond yield was flat at 0.765%.
India's Sensex closed flat at 73876.82, with investors likely awaiting Fed Chair Jerome Powell's speech later in the day for more hints about the trajectory of rate cuts this year and the Reserve Bank of India's policy decision later this week. Among the gainers, NTPC climbed 2.0% and Tata Consultancy Services added 1.7%. Power stocks rose notably, with JSW Energy advancing 7.2% and Adani Power increasing 5.0%. Decliners included Nestle India, which fell 2.6%, and Kotak Mahindra Bank, which shed 1.4%.
European shares closed higher, with the STOXX Europe 600 Index and CAC 40 rising 0.3% to 510.02 and 8,153.23 respectively, and the DAX climbed 0.5% to 18,367.72.
The FTSE 100 closed virtually flat, up 0.03% at 7937 points on Wednesday after recovering from a lower morning.