Asian Shares Advance On China Optimism

(RTTNews) - Asian stocks advanced on Thursday, as investors reacted to modestly hawkish Federal Reserve minutes and data showing slight improvement in China's services sector.

Gold hovered near a seven-month peak as the dollar index extended losses ahead of key U.S. jobs data due on Friday that could influence the Federal Reserve's policy trajectory.

Oil prices rose about 1 percent in Asian trading after opening the year down more than 9 percent, the worst yearly start in over three decades.

China's Shanghai Composite index rallied 1.01 percent to 3,155.22 after a private survey showed services activity in the country contracted at a slower pace in December.

Also aiding sentiment, China's central bank said it would step up financing support to spur domestic demand and support a stable real estate market in 2023.

Hong Kong's Hang Seng index jumped 1.25 percent to 21,052.17 on hopes for China's emergence from the COVID-19 pandemic.

The Chinese government announced that it will reopen its border with Hong Kong on January 8, nearly three years after it was largely shut in an effort to contain the spread of COVID.

Japanese shares eked out modest gains as a weaker yen boosted exporters and tech shares followed their U.S. peers higher.

The Nikkei average rose 0.40 percent to 25,820.80 while the broader Topix index settled marginally higher at 1,868.90. Sony, SoftBank Group, Advantest and Tokyo Electron climbed 2-4 percent. Nippon Sheet Glass topped the gainers list to surge 7.6 percent.

Seoul stocks closed higher for a second straight session, with financials and chip-related shares pacing the gainers. The Kospi average inched up 0.38 percent to 2,264.65.

Hana Financial Group, KB Financial Group and Shinhan Group surged 7-8 percent on expectations the government's recent easing of property regulations could increase demand for loans.

Australian stocks ended off their day's highs as energy stocks tumbled, offsetting gains in the financial and technology sectors.

The benchmark S&P/ASX 200 finished marginally higher at 7,063.60 while the broader All Ordinaries index edged up 0.14 percent to 7,259.30.

Santos and Woodside Energy Group dropped 1-2 percent after oil prices opened the year with steep losses on fuel demand concerns.

Warrego Energy soared more than 10 percent after Gina Rinehart's Hancock Energy sweetened its takeover offer for the company.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.55 percent to close at 11,651.29.

U.S. stocks fluctuated before eventually finishing higher overnight, as latest data revealed contraction in manufacturing activity and the minutes from the Fed's December policy meeting showed interest rates will stay high through 2023 to curb "unacceptably high" inflation.

The Dow edged up 0.4 percent, the tech-heavy Nasdaq Composite gained 0.7 percent and the S&P 500 added 0.8 percent.