The stock markets across the Asia-Pacific region were trading mostly higher on Thursday, extending their gains for a fourth day. Wall Street's extended gains overnight and a further drop in oil prices eased investor concerns about inflation and credit markets. Financial stocks rose on hopes that the troubled U.S. mortgage lenders, Freddie Mac and Fannie Mae, would receive emergency government funding. However, weaker commodity prices weighed on the resources sector.
Crude oil prices fell by nearly $4 to a six-week low at $124.19 a barrel in U.S. trading overnight after government data showed that gasoline stocks rose far above analysts forecasts, as high prices and economic turmoil lowered demand for fuel. Oil is currently down 41 cents at $124.03 a barrel in the Asian session.
On the currency front, the dollar was stronger against most Asian major currencies in early trade. The greenback traded slightly higher in the upper 107-yen levels, the Australian dollar opened weaker at US$0.9618-0.9622 and the kiwi dropped to US$0.7513 after the Reserve Bank of New Zealand decided to reduce its official cash rate by 25 basis points to 8.0%. However, the South Korean won opened slightly higher at 1,010.0 a dollar.
The Japanese market was trading higher, extending gains for the third straight session. At 8.08 P.M. ET, the benchmark Nikkei 225 Index was advancing 149.75 points or 1.12% to 13,462.68, while the broader Topix Index of all First Section Issues was gaining 11.88 points to 1,315.23.
Among economic news, the Ministry of Finance said that Japan's trade surplus for the month of June plummeted 88.9% from a year ago to 138.6 billion yen, or US$1.3 billion. Exports declined 1.7% to 7.16 trillion yen, while imports increased 16.2% to 7.02 trillion yen on the back of surging crude oil and other commodities. The surplus figure was far below the 450 billion yen most economists had forecast.
In the baking space, Mizuho Financial rose 2.23%, Sumitomo Mitsui advanced 1.71%, Mitsubishi UFJ gained 2.18%, Resona Holdings added 0.99% and Shinsei Bank climbed 2.59%. Automaker Honda rose 2.43% percent, Toyota gained 3.70%, Suzuki added 0.61%, Mitsubishi Motors climbed 2.17% and Nissan added 1.20%.
Among consumer product companies, electronics giant Sony rose 2.74%, Canon climbed 1.93%, Olympus advanced 2.30% and electronics maker Toshiba gained 0.96%.
Tech stocks too gained ground. Advantest rose 3.30%, Fanuc advanced 1.00%, NEC climbed 1.02%, Fujitsu added 0.74% and Tokyo Electron gained 1.65%.
Meanwhile, oil explorer Inpex Holdings plummeted 4.70% and Nippon Oil gave away 0.59%. Showa Shell added 0.34%.
The South Korean market was trading sharply higher, extending Wednesday's 2% gains. Weaker oil prices eased investor concerns about inflation and an economic slowdown. At 9:10 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was up 26.11 points or 1.64% at 1,617.87.
Hynix Semiconductors edged up 0.2%. The world's second-largest producer of computer memory chips said that it has decided to shut down its U.S. plant as part of a plan to restructure its business amid falling global chip prices.
Among other technology stocks, market heavyweight Samsung Electronics jumped 2.7% and LG Electronics surged 5.1%, but LG Display fell 1.4%.
Automaker Hyundai Motor advanced 2.8% and steel major POSCO climbed 1.7%. Leading lender KookMin Bank lost 0.7% and Shinhan Financial Group gained 1.8%, while Woori Finance was unchanged. Brokerage Mirae Asset Securities added 0.5%.
The Australian stock market was trading flat, as weaker commodity prices, including oil and gold, pressured the resources sector. The local stock market closed nearly 2% higher Wednesday, led by financials.
At 9:15 p.m. ET, the benchmark S&P/ASX 200 index was down 1 point or 0.02% at 5,104 and the broader All Ordinaries index was losing 6 points or 0.12% to 5,156.
On the economic front, Australia's docket of economic data is clear.
Banks were strong in early trade. Commonwealth Bank gained 1.03% and Westpac added 0.82%, while ANZ edged up 0.42% and National Australia Bank rose 1.32%. St. George bank advanced 1.63%, while investment bank Macquarie Group was up 2.29%.
In the resources sector, index leader BHP Billiton was down 2.28%, despite announcing solid quarterly production and its takeover target Rio Tinto declined 2.61%. Gold prices closed sharply lower on Wednesday. Gold miners were weak as Lihir Gold fell 4.03%, and Newcrest Mining plunged 5.85% after it delivered a 6% quarterly drop in output.
Among energy stocks, Woodside lost 3.50%, Santos fell 2.22%, while Oil Search added 2.34%.
In the retail sector, David Jones rose 3.00%, while Coles owner Wesfarmer edged up 0.66% and Woolworths was up 0.78%.
The New Zealand stock market opened sharply higher after a favorable rate decision. The benchmark NZX50 index was up 41.21 points or 1.29% to 3,242.86 shortly after the market opened for the day. Meanwhile the NZX All Capital Index rose 38.74 points or 1.20% to 3,264.03.
The Reserve Bank of New Zealand reduced its Official Cash Rate by 25 basis points on Thursday to 8.0%. This marks the first change in the OCR since July 2007, when it was hiked 25 basis points to 8.25%.
Announcing the reduction in interest rate, RBNZ Governor Alan Bollard said that the OCR would be reduced further if "the outlook for inflation continues to improve and there is no excessive exchange rate depreciation'.
In the early trading at the New Zealand stock market on Thursday, top ranked share Telecom posted a gain of 0.57%, while the second ranked Contact Energy added 1.97%. Fletcher Building, the third best stock, surged 3.97%.
In the retail sector Hallenstein Glasson remained unchanged. Pumpkin Patch added 1.415, while Warehouse climbed 1.28% in the day's early trading.
In the energy sector Vector collected 0.97%, while TrustPower inched up by 0.13%.
Among other notable stocks Nuplex and Michael Hill remained unchanged. Sky Network Television gained 3.37%, while Sky City jumped 3.23%. Steel & Tube Holdings remained unchanged, as Infratil added 2.50%.
All the major dual listed issues, including AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank, remained unchanged.
Other major gainers in the early trading included - Auckland International Airport by 1.66%, Air New Zealand by 4.88%, Cavalier Corporation by 2.33%, Fisher & Paykel Appliances by 5.50%, Fisher & Paykel Healthcare by 5.69%, Freightways by 1.01%, Guinness Peat Group by 2.21%, Kiwi Income Property Trust by 2.61%, Property For Industry by 2.61%, Rakon by 4.25%, Ryman Healthcare by 3.14% and Tower by 0.96%.
The only decliner in the day's early trading was New Zealand Oil & Gas Limited. The company's stocks fell by 1.30% on Thursday morning.
Other Asian markets:
Hong Kong's Hang Seng index was up 0.1% at 23,162; China's Shanghai composite index was up 1.6% at 2,882; Singapore's Straits Times index was flat at 2,980; Taiwan's weighted index was up 0.3% at 7,328; and Malaysia's KLCI was down 6.5 points at 1,132.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.