CANBERA (dpa-AFX) - Asian stock markets are higher on Thursday following the overnight gains on Wall Street after the U.S. Federal Reserve left interest rates unchanged as expected and also said it will be patient regarding further rate hikes.
Fed Chairman Jerome Powell noted in his press conference that the 'case for raising rates has weakened somewhat.' Investors also digested data showing that China's manufacturing activity contracted for a second straight month in January.
The Australian market is edging higher. Resources stocks were aided by the continuing surge in commodity prices, while the heavyweight financial sector remained weak.
The benchmark S&P/ASX 200 Index is adding 4.20 points or 0.07 percent to 5,890.90, after rising to a high of 5,912.60 earlier. The broader All Ordinaries Index is up 8.40 points or 0.14 percent to 5,959.60. Australian stocks eked out modest gains on Wednesday.
Among the major miners, Fortescue Metals is rising more than 2 percent, BHP Group is advancing more than 1 percent and Rio Tinto is adding 0.7 percent.
Fortescue Metals reported a 5 percent increase in second-quarter iron ore shipments and affirmed its fiscal 2019 shipment outlook.
Oil stocks are higher after crude oil prices extended gains overnight. Oil Search is advancing more than 2 percent, Woodside Petroleum is adding 0.4 percent and Santos is up 0.3 percent.
Origin Energy reported a 45 percent increase in second-quarter revenue, reflecting higher oil prices and realised spot LNG prices. The electricity and gas retailer's shares are adding more than 1 percent.
AGL Energy has called off the sale of its north Queensland gas assets to a Chinese consortium, saying that certain conditions prior to the sale were unable to be satisfied. The power company's shares are down 0.7 percent.
Gold miners are higher after gold prices edged higher overnight. Evolution Mining is rising more than 2 percent and Newcrest Mining is up 0.3 percent.
The big four banks continued to trade weak, ahead of the publication of the royal commission findings later this week. ANZ Banking, National Australia Bank, Westpac and Commonwealth Bank are declining in a range of 0.4 percent to 1.2 percent.
AMP has appointed Andrea Slattery as a non-executive director after the Australia Institute of Company Directors revealed that AMP was one of only four ASX 200 companies with no women in the boardroom. The wealth manager's shares are lower by 0.4 percent.
On the economic front, the Australian Bureau of Statistics said that import prices in Australia climbed 0.5 percent on quarter in the fourth quarter of 2018. That beat forecasts for an increase of 0.3 percent following the 1.9 percent jump in the three months prior.
Export prices spiked 4.4 percent on quarter, again exceeding expectations for a gain of 2.7 percent following the 3.7 percent advance in the third quarter.
The Reserve Bank of Australia said that private sector credit was up 0.2 percent on month in December. That was shy of estimates for 0.3 percent, which would have been unchanged from the November reading.
In the currency market, the Australian dollar is higher against the U.S. dollar on Thursday. The local currency was quoted at $0.7250, down from a high of $0.7195 on Wednesday.
The Japanese market is rebounding.
The benchmark Nikkei 225 Index is rising 175.56 points or 0.85 percent to 20,732.10, after touching a high of 20,869.42 in early trades. Japanese shares fell on Wednesday.
The major exporters are mostly higher despite a stronger yen. Sony is rising more than 2 percent, Panasonic is adding 0.5 percent and Mitsubishi Electric is unchanged, while Canon is down 0.4 percent.
In the tech sector, Advantest is gaining almost 6 percent and Tokyo Electron is adding more than 1 percent. Sharp Corp. lowered its fiscal 2018 group sales and operating profit outlook due to the possible negative effects of the prolonged U.S.-China trade dispute.
Among the major automakers, Toyota is up 0.4 percent and Honda is rising 0.5 percent.
In the banking space, Mitsubishi UFJ Financial is up 0.4 percent and Sumitomo Mitsui Financial is higher by 0.6 percent. In the oil space, Japan Petroleum is rising more than 2 percent and Inpex is advancing almost 2 percent after crude oil prices rose overnight.
Among the major gainers, NEC Corp. is gaining more than 7 percent, TDK Corp. is higher by 6 percent and Toho Zinc is advancing more than 5 percent.
On the flip side, Sumitomo Dainippon Pharma is falling more than 13 percent, Cyberagent is losing more than 12 percent and Screen Holdings is lower by more than 11 percent.
In economic news, the Ministry of Economy, Trade and Industry said in Thursday's preliminary reading that industrial output in Japan fell a seasonally adjusted 0.1 percent on month in December. That exceeded expectations for a decline of 0.5 percent following the 1.0 percent drop in November.
Japan will also release December numbers for vehicle production, housing starts and construction orders today.
In the currency market, the U.S. dollar is trading in the upper 108 yen-range on Thursday.
Elsewhere in Asia, Shanghai and Hong Kong are advancing almost 1 percent each. South Korea, Singapore, New Zealand, Indonesia, Malaysia and Taiwan are also higher.
On Wall Street, stocks closed sharply higher on Wednesday after the Federal Reserve announced its widely expected decision to leave interest rates unchanged and indicated it will remain patient regarding further rate hikes. The positive sentiment generated by the Fed statement added to the buying interest generated in reaction to earnings news from big-name companies like Boeing and Apple.
The Dow surged up 434.90 points or 1.8 percent to 25,014.86, the Nasdaq soared 154.79 points or 2.2 percent to 7,183.08 and the S&P 500 jumped 41.05 points or 1.6 percent to 2,681.05.
The major European markets ended mixed on Wednesday. While the German DAX Index fell by 0.3 percent, the French CAC 40 Index jumped by 1 percent and the U.K.'s FTSE 100 Index surged up by 1.6 percent.
Crude oil prices surged Wednesday, extending gains from the previous session on U.S. sanctions of Venezuelan oil. WTI crude for March ended up $0.92 or 1.7 percent at $54.23 a barrel on the New York Mercantile Exchange.
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