Asian Pacific shares opened in a mixed fashion on Thursday, following a surge in global technology stocks overnight.
By 12:15 am AEDT (1:25 am GMT) S&P/ASX 200 tick 0.3% higher, the KOSPI 200 eased 0.1% and the Nikkei 225 fell 0.2%.
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The S&P slightly rose, offsetting initial gains, but still managed to record its fourth successive all-time closing high. Meanwhile, the Dow Industrials experienced a minor setback as investors evaluated the latest earnings reports.
Shares of major technology and communications firms were the primary drivers of these gains, while real estate, utilities, materials, and consumer staples stocks each dropped over 1%. Energy stocks saw a boost from increasing oil and gas prices.
In the commodities market, Brent crude oil climbed 0.93% to $US80.29 a barrel, Gold slipped 0.75% to $US2,014.12, and Iron ore advanced 0.4% to $US79.85 a barrel.
In the local bond market, yields on Australian 2-year government bonds rose to 3.92%, and the 10-year yield also increased to 4.27%. In international markets, the US Treasury notes were mostly in the green, with the yield on 2-year notes slightly up at 4.38% and the 10-year yield advancing to 4.17%.
The Australian dollar was relatively steady at 65.76 US cents from its previous close of 67.78.
Chinese stocks closed higher after a tumultuous trading day marked by gains and losses. To regain investor confidence, HSBC economists have suggested capital-market reforms such as more coordinated and proactive policy support to enhance the macro outlook. This follows a report that Beijing is contemplating a market stabilization fund and other measures. Auto and consumer durable stocks led the gains. The benchmark Shanghai Composite Index rose 1.8% to 2820.77, the Shenzhen Composite Index climbed 1.25%, and the tech-heavy ChiNext Price Index advanced 0.5%.
Hong Kong shares closed higher after PBOC Governor Pan Gongsheng announced a cut in banks' reserve requirement ratio, effective from Feb. 5. The benchmark Hang Seng Index rose 3.6% to 15899.87, and the Hang Seng Tech Index gained 4.2%. Nearly all sectors on the index advanced, with tech stocks leading the rally.
Japanese stocks closed lower, pulled down by declines in real-estate stocks, as government bond yields rise across the yield curve. The Nikkei Stock Average fell by 0.8% to 36226.48. Investors are now focused on earnings, as Nidec's upcoming results mark the start of the earnings season.
Indian shares closed higher, driven by steel and tech stocks, likely rebounding from previous losses. The benchmark Sensex closed 1.0% higher at 71060.31.
European markets experienced gains, fueled by hopes for a stimulus boost to the Chinese economy, which lifted mining stocks. The Stoxx Europe 600 and DAX rose by 1%, and the CAC 40 rallied by 0.9%, with Antofagasta (LON:ANTO), Anglo American (JO:AGLJ), and Glencore (LON:GLEN) making gains. The Dow also rose by 0.2%. Brent crude increased by 0.6% to $80.05 a barrel amid continuing Middle East tensions.
The FTSE 100 index rose to a one-week high, ending Wednesday's session 0.56% higher at 7,527.67 points. The surge was driven by a rebound in basic resources and China-exposed stocks.