Asia-Pacific Stocks Start the Day Higher

By Joanne Chiu 

Asia-Pacific stocks were broadly higher Thursday, building on gains a day earlier, with oil prices at 3 1/2 -year highs helping to boost sentiment for the region's equities.

The Nikkei in Tokyo was recently up 0.8%, aided by yen selling and strength in commodity-related stocks. Australia's S&P/ASX 200 rose 0.7% on a 1.2% climb for the energy sector, which is up 8.8% this month.

Oil futures jumped nearly 3% on Wednesday, with rallies during European and U.S. trading. Increases in U.S. oil production slowed last week.

Michael McCarthy, chief market strategist at CMC Markets said recent data show industrial demand is stronger than what has been expected and that "we might underestimate the strength of turnaround of the global economy."

Hong Kong's Hang Seng rose 0.9%, with just one of its 50 stocks-- Sun Hung Kai Properties--down in the opening minutes.

Taiwan's Taiex gained 0.8% early, with index heavyweight Taiwan Semiconductor Manufacturing rebounding 1.9%.

Samsung Electronics rose 1.3%, though Korea's Kospi rose just 0.1% as Korean Air Lines pulled back nearly 3%.

In general, receding geopolitical concerns have helped Asian equities in recent days, including worries about U.S.-China trade. "The market has recast what it is," said Mr. McCarthy. "It's not a trade war, It's a negotiation. And that is a lot more comfortable for investors."

Write to Joanne Chiu at [e-mail]

(END) Dow Jones Newswires

April 18, 2018 21:54 ET (01:54 GMT)

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