Asian stocks rallied on Thursday after oil prices tumbled by the most in nearly two years and Ukraine’s president said one of Russia’s negotiating demands could be met.
Oil prices regained some footing in Asian trade after having fallen more than 12 percent in the previous session as two members of the OPEC oil cartel said they would support increasing production.
Chinese markets followed Wall Street higher after Ukraine said it is ready to make reasonable concessions to end the war. The benchmark Shanghai Composite index rose 39.70 points, or 1.22 percent, to 3,296.09 while Hong Kong’s Hang Seng index ended up 262.55 points, or 1.27 percent, at 20,890.26.
Japanese shares jumped the most in 21 months as the resumption of diplomatic talks between Russia and Ukraine boosted investor sentiment globally. The Nikkei average soared 972.87 points, or 3.94 percent, to 25,690.40, with 222 of its 225 component stocks advancing. The broader Topix index closed 4.04 percent higher at 1,830.03.
Chemical company Showa Denko topped the gainers list to close 10.4 percent higher while automakers such as Honda, Nissan, Toyota and Suzuki rallied 4-9 percent. Chipmakers Advantest, Renesas, Tokyo Electron climbed 4-5 percent.
Australian markets logged their best single-day gain in a month, with financials and tech stocks outperforming on hopes of some headway in Russia-Ukraine diplomatic talks.
The benchmark S&P/ASX 200 rose 77.80 points, or 1.10 percent, to 7,130.80, marking its best session since Feb. 9. The broader All Ordinaries index ended up 79.10 points, or 1.08 percent, at 7,410.90.
The big four banks gained between 2.4 percent and 3.5 percent, a day after RBA Governor Philip Lowe said that it was “plausible” the central bank could hike interest rates in 2022.
Block Inc. shares surged as much as 7.1 percent in the technology sector while mining and energy stocks suffered heavy losses after a pullback in commodity prices.
Seoul stocks jumped as trading resumed after a day off for the country’s presidential election. The Kospi average rallied 57.92 points, or 2.21 percent, to 2,680.32, snapping a three-day losing streak.
Market bellwether Samsung Electronics advanced 2.5 percent and No. 2 chipmaker SK Hynix added 1.7 percent. Internet portal operator Naver and Kakao both surged around 8.5 percent.
New Zealand shares posted strong gains, with the benchmark S&P/NZX 50 index climbing 141.13 points, or 1.20 percent, to finish at 11,926.26 -marking its best session since March 1. Growth stocks rebounded, with Pacific Edge surging 6.9 percent and Serko adding 4.7 percent.
U.S. stocks surged the most since June 2020 overnight, oil slid below $110 a barrel and the 10-year Treasury yield climbed back above 1.9 percent, after Ukrainian President Volodymyr Zelenskiy said the country is ready to hold a dialogue with Russia on security guarantees and the future of Donetsk, Lugansk and Crimea.
The Dow rallied 2 percent, the S&P 500 added 2.6 percent and the tech-heavy Nasdaq Composite surged as much as 3.6 percent.
Market Analysis
Asian Shares Rally As Inflation Worries Ease
2022-03-10 08:42:59
