Asian stock markets are mostly higher on Thursday, with the overnight gains on U.S. and European markets as well as higher crude oil prices boosting investor sentiment. Investors also got a respite from the wild swings in the Chinese stock market, which is closed for a two-day holiday.
The Australian market slipped into negative territory, after opening higher following the overnight gains on Wall Street. Retailers are leading the decliners on the back of disappointing retail sales data for the month of July.
In late-morning trades, the benchmark S&P/ASX200 Index is declining 40.20 points or 0.79 percent to 5,061.30, after opening higher and rising to a high of 5,175.30 earlier. The broader All Ordinaries Index is down 37.70 points or 0.74 percent to 5,081.70.
Among the retailers, Myer Holdings is down almost 22 percent as a trading halt on its shares were lifted after the company's announcement of a A$221 million capital raising and full-year results on Tuesday. Meanwhile, JB Hi-Fi and Harvey Norman are losing more than 1 percent each.
In the mining space, BHP Billiton (BHP) is edging down 0.08 percent and Rio Tinto (RIO) is declining 0.2 percent, while Fortescue Metals is gaining more than 3 percent.
Gold miner Newcrest Mining is lower by almost 2 percent as gold prices eased overnight.
In the oil sector, Oil Search is up 0.3 percent and Woodside Petroleum is adding 0.4 percent, while Santos is losing more than 2 percent after crude oil prices ended higher overnight.
Among the big four banks, ANZ Banking, National Australia Bank and Commonwealth Bank are down in a range of 0.4 percent to 0.8 percent, while Westpac (WBK) is adding 0.5 percent.
National Australia Bank said it will not fund the controversial A$16 billion Carmichael coal mine slated for Queensland's Galilee Basin.
Outdoor goods retailer Kathmandu Holdings has once again urged shareholders to reject a takeover offer from Briscoe after the New Zealand retailer said it would not sweeten its bid. Shares of the company are down 4 percent.
On the economic front, the Australian Bureau of Statistics said that the total value of retail sales in Australia was down a seasonally adjusted 0.1 percent on month in July, coming in at A$24.311 billion. That was well shy of forecasts for an increase of 0.4 percent following the downwardly revised 0.6 percent gain in June.
The Australian Industry Group said that the service sector in Australia expanded in August, and at a faster rate, with a PMI score of 55.6. That's up from 54.1 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. It also marks the third straight month of expansion and the highest reading on the index since March 2008.
Australia will also release July figures for trade balance later today.
In the currency market, the Australian dollar rebounded from a six-year low against the U.S. dollar on the back of gains in U.S. stocks and a Chinese national holiday. In early trades Thursday, the local unit was trading at US$0.7039, up from Wednesday's close of US$0.7024.
The Japanese market rose sharply, as the overnight gains on Wall Street and a weaker yen lifted investor sentiment.
In late-morning trades, the benchmark Nikkei 225 index is advancing 200.33 points or 1.11 percent to 18,295.73, off a high of 18,481.57 in early trades.
Insurance, iron and steel, and nonferrous metals stocks are among the leading gainers.
Among the major exporters, Toshiba is gaining almost 3 percent, Panasonic is advancing about 2 percent, Canon is up more than 2 percent and Sony Corp. (SNE) is adding 0.7 percent. Meanwhile, market heavyweight Fast Retailing is declining more than 1 percent.
In the tech sector, Fanuc is advancing more than 1 percent and Tokyo Electron is adding 1.6 percent. Automaker Toyota (TM) is gaining more than 3 percent and Honda (HMC) is up more than 2 percent.
In the banking space, Mitsubishi UFJ Financial (MTU) is adding 0.6 percent and Sumitomo Mitsui Financial is higher by 0.5 percent, while Mizuho Financial Group (MFG) is declining 0.8 percent.
Among the other major gainers, Mineabea Co. is gaining almost 10 percent, NTT Docomo is higher by almost 7 percent and Nippon Soda is rising more than 6 percent. Meanwhile, Tokuyama Corp. is declining 1.5 percent.
On the economic front, the latest survey from Nikkei showed that the services sector in Japan continued to expand in August, and at a faster pace, with a PMI score of 53.7. That's up from 51.2 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The composite index came in with a score of 52.9, up from 51.5.
In the currency market, the U.S. dollar traded in the upper 120 yen-range on Thursday, up from Wednesday's close in the lower 120 yen range in Tokyo.
Elsewhere in the Asian region, South Korea, Singapore, Indonesia, Taiwan and Malaysia are higher, while New Zealand is in marginally lower. The markets in China and Hong Kong are closed on Thursday for Victory Day.
On Wall Street, stocks closed sharply higher on Wednesday following the sell-off seen in the previous session, partly due to bargain hunting. Traders also reacted positively to the release of payroll processor ADP's report on private sector employment in the month of August.
The major European markets ended moderately higher on Wednesday. While the U.K.'s FTSE 100 Index advanced by 0.4 percent, the French CAC 40 Index and the German DAX Index both rose by 0.3 percent.
U.S. crude oil ended higher on Wednesday, despite official data from the Energy Information Administration that showed crude stockpiles in the U.S. to have increased more than expected last week.
Crude oil futures for October delivery, the most actively traded contract, gained $0.84 or 1.9 percent to settle at $46.25 a barrel on the New York Mercantile Exchange Wednesday.
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