Japanese stocks closed at a 15-year high Thursday but Sydney and Wellington retreated in holiday-thinned Asian trade despite US Federal Reserve minutes suggesting an interest rate hike could be put back.
Dealers were also keeping tabs on the eurozone after the European Central Bank provided Greece crucial emergency funding before its expected application for a bailout extension.
Tokyo climbed 0.36 percent, or 65.62 points, to 18,264.79, its best finish since May 2000. However, Sydney eased 0.19 percent, or 11.48 points, to 5904.2 and Wellington fell 0.26 percent, or 15.13 points, to 5,726.23.
All other regional markets were closed, except Bangkok which closed down 0.20 percent and Mumbai which dipped 0.48 percent.
Minutes of the Fed’s January policy meeting showed board members remain cautious about lifting rates too soon, despite a healthy recovery in the world’s number one economy.
With an eye on overseas economic troubles, including in Europe, Japan and China, the minutes showed policymakers were also wary of making any moves too soon, while inflation and wage growth at home remained tepid.
While markets still see the central bank raising rates around the middle of the year, the latest news dampened expectations that it will come sooner than later.
“If the Fed delays rate hikes beyond September while the US economy’s not doing badly, it’ll be a boost for stock markets around the world,” Mitsushige Akino, an executive officer at Ichiyoshi Asset Management Co. in Tokyo, told Bloomberg News.
“The general consensus that the rate hikes will be between June and September hasn’t changed.”
US shares recovered from early losses in reaction to the minutes and ended broadly flat. The Dow dipped 0.10 percent, the S&P 500 eased 0.03 percent from a record high and the Nasdaq added 0.14 percent.
In Europe, the ECB extended emergency liquidity to Greece’s struggling banks a day before the country’s new government is due to ask formally for a six-month extension on its bailout without the painful austerity measures attached.
Athens said it was “optimistic” the debt stand-off with its eurozone partners could be resolved by meeting the demands of both the Greek people and creditors.
However, investors remain on edge after European Union heavyweight Germany gave an initial brush-off to the planned offer, which has fanned fears Greece could end up crashing out of the eurozone.
The euro trod water in Asian trade. It bought $1.1415 and 135.49 yen compared with $1.1398 and 135.35 yen in New York Wednesday.
The dollar was at 118.70 yen against 118.76 yen.
Oil prices retreated ahead of a closely watched US stockpiles report, which is forecast to reveal a big rise, dealing a blow after a recent rally in the black gold.
US benchmark West Texas Intermediate shed $1.53 to $50.61 a barrel Thursday while European benchmark Brent slid 99 cents to $59.54 a barrel.
Gold fetched $1,218.81 an ounce, against $1,205.48 on Wednesday.
In other markets:
— Mumbai rose 0.48 percent, or 142.01 points, to end at 29,462.27 points.
Sesa Sterlite rose 6.95 percent to 219.15 rupees, while IT major Wipro fell 1.36 percent to 659.50 rupees.
— Bangkok closed down 0.20 percent, or 3.18 points, to 1,599.96.
Oil company PTT lost 3.09 percent to 345.00 baht, while Siam Cement gained 4.74 percent to 530.00 baht.