Asia-Pacific markets closed higher on Thursday, following gains on Wall Street that saw the S&P 500 and Dow Jones Industrial Average reach new records as investors shrugged off geopolitical concerns.
In Japan, the Nikkei 225 index gained 120.93 points, or 0.3%, to 39,380.89.
Traders in Asia were assessing September data on producer prices in Japan which rose 2.8% from a year ago. Economists polled by Reuters had predicted the inflation rate would come in at 2.3%, down from 2.5% in August.
Investors also assessed quarterly earnings report from Japanese retailer Seven & i Holdings Co. after it received a revised buyout offer from Alimentation Couche-Tard.
Seven & i slashed its operating profit outlook for the 12 months through to the end of February, as well as its net profit forecast. Seven & i shares ended the trading day down 0.43% on Thursday.
In Hong Kong, the Hang Seng index recovered in a big way Thursday, piling on 614.74 points, or 1.4%, to 21,251.98.
CHINA
In Shanghai, the CSI 300 regained 41.81 points, or 1.1%, to 3,997.79.
China’s central bank said it began accepting applications from financial institutions to join a newly created liquidity tool — initially worth 500 billion yuan ($70.7 billion U,S.) — that will provide easier access to capital for the stock market.
The rebound in Chinese stocks comes after a market rally stalled on Wednesday. The CSI 300 broke a 10-day winning streak to drop 7%. The rally had been triggered by a blitz of government stimulus measures at the end of September.
China’s Finance Ministry will hold a press briefing on Oct. 12, during which they may provide additional insights into fiscal policy and economic development.
Speaking on Thursday, Chetan Ahya, Chief Asia Economist at Morgan Stanley, said that Beijing would need to announce a 10 trillion yuan ($1.4 trillion) fiscal stimulus focused on boosting consumption to create a sustained turn around in investor confidence.
In other markets
Markets in Taiwan were shuttered for the 10-10 holiday.
In Korea, the Kospi index returned from holiday to gain 4.8 points, or 0.2%, to 2,599.16.
In Singapore, the Straits Times Index docked 10.37 points, or 0.3%, to 3,585.29.
In New Zealand, the NZX 50 slid 21.56 points, or 0.2%, to 12,754.58
In Australia, the ASX 200 added 35.6 points, or 0.4%, to 8,222.98.
