Asian stocks rose across the board on Thursday after Wall Street recorded its biggest rally since 2011 overnight amid signs the Federal Reserve may delay its September rate hike. Chinese shares also closed up for the first time in six days, easing fears that a prolonged slump would cause too much trouble for the world's second largest economy.
China's Shanghai Composite index snapped a five-day losing streak to reclaim the critical 3,000 mark. The benchmark index closed up 156.30 points or 5.34 percent at 3.083.59, buoyed by some late-session buying amid an upswing in sentiment across the region. Hong Kong's Hang Seng index jumped 758.15 points or 3.60 percent to 21,838.54 as shares in mainland China bounced back from recent steep losses.
Japanese shares extended gains as U.S. stocks rebounded and the yen weakened on the back of improving risk appetite. The benchmark Nikkei average closed up 197.61 points or 1.08 percent at 18,574.44, adding to the previous day's 3.2 percent gain. The broader Topix index of all first-section issues finished up 21.44 points or 1.45 percent at 1,500.41.
Among the best performers, NTT DOCOMO, Sumitomo Chemical, Tokio Marine Holdings, Nippon Telegraph & Telephone an Obayashi Corp climbed 4-5 percent. Mitsubishi UFJ Financial Group, Japan's largest bank, gained 2.3 percent, Sumitomo Mitsui Financial Group added 2.6 percent and Mizuho Financial rose 2.2 percent. Toyota Motor advanced 1.5 percent on news it has resumed operations near the Chinese port of Tianjin.
Steel maker JFE Holdings fell 2.5 percent, electronics manufacturer Sharp Corp lost 2.3 percent and robot maker Fanuc dropped 1.8 percent. Shipping lines Kawasaki Kisen and Nippon Yusen both fell over 1 percent.
In economic news, Bank of Japan (BOJ) Governor Haruhiko Kuroda has reiterated that falling oil prices will not stop the central bank from achieving its 2 percent inflation target with the current level of monetary stimulus. However, he added that the BoJ would make adjustments without hesitation if necessary.
Australian stocks extended gains for a second straight session after bargain hunting in beaten-down stocks propelled the U.S. markets sharply higher overnight. The benchmark S&P/ASX 200 index rallied 60.5 points or 1.17 percent to 5,233.3, while the broader All Ordinaries closed up 63.7 points or 1.23 percent at 5,242.6. The big four banks finished up between 0.4 percent and 1.8 percent. There were reports that Nippon Life Insurance in in talks to buy National Australia Bank's insurance business.
Mining giant BHP Billiton advanced half a percent, while Rio Tinto slid 0.2 percent and smaller rival Fortescue Metals Group shed 0.8 percent. Energy stocks turned in a mixed performance, with Woodside Petroleum rising 1.7 percent and Santos climbing 2.1 percent on firmer oil prices, while Oil Search tumbled 3.2 percent.
Building products supplier Boral plunged 8 percent despite the company posting a strong 48 percent rise in full-year profit. Nine Entertainment Holdings rallied 3.5 percent and Ramsay Health Care jumped 5.5 percent after posting better-than-expected financial results. Flight Centre Travel Group shares soared 11.5 percent after posting strong full-year results and flagging a better year ahead.
On the economic front, Australia's capital expenditure fell more than expected in the second quarter of 2015, the results of a survey by the Australian Bureau of Statistics showed. Spending on buildings and structures dropped 5.6 per cent in the June quarter, led by a 10.9 percent fall in mining construction activity.
Seoul shares rose for a third straight day on hopes for delayed U.S. rate hike. The benchmark Kospi average climbed 13.91 points or 0.73 percent to close at 1,908, a one-week high after posting its biggest single-day gain in two years on Wednesday.
Among the prominent gainers, Lotte Shipping, Amore Pacific, SK Hynix and Cheil Industries jumped 5-7 percent. Market heavyweight Samsung Electronics closed on a flat note, while automaker Hyundai Motor and steelmaker POSCO lost about 2 percent each.
New Zealand shares joined a rebound in global equities as risk aversion subsided. The benchmark NZX-50 index rose 57.16 points or 1.02 percent to close at 5,634.94, with some recent battered shares pacing the gainers. A2 Milk climbed 4.3 percent and Auckland Airport rallied 3.6 percent. Spark New Zealand climbed 3.4 percent, extending recent gains after forecasting increased dividend in 2016.
Elsewhere, India's Sensex was rallying 2.2 percent, Indonesia's Jakarta Composite index was climbing 4.5 percent, Malaysia's KLSE Composite index was rising 1.4 percent, Singapore's Straits Times index was up 2.5 percent and the Taiwan Weighted average advanced 1.4 percent.
On Wall Street, the major averages climbed about 4 percent each overnight after seeing the longest slide in more than three years over the past six sessions on concerns about the health of the Chinese economy. Sentiment was supported by upbeat durable goods orders data and comments from New York Fed President William Dudley that the Federal Reserve might not raise interest rates next month.
Dudley, a close ally of Fed Chair Janet Yellen, told a press briefing on Wednesday that a September rate hike is looking less compelling than a few weeks ago given the downside risks that international developments could pose to U.S. economic growth.
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