Asia Markets: Nikkei keeps rising as Asian markets extend gains http://ift.tt/2kLN9W3

Equity markets in Asia extended their gains on Thursday, taking cues from fresh overnight records set by key U.S. indexes as the earnings season kicks off.

Strong earnings growth has supported major stock indexes this year, and some analysts said they expect third-quarter results to continue to outperform expectations. Meanwhile, the Federal Reserve signaled its confidence that the U.S. economy was strong enough to support further rate increases.

“The Fed minutes indicated a positive outlook on the U.S. economy. That augurs well for global growth,” said Alex Wijaya, head of Southeast Asia for Axicorp Financial Services.

Minutes from the Fed’s latest policy meeting, released Wednesday, showed most officials expect the central bank to raise short-term interest rates again this year. That helped alleviate signs of rate uncertainty in the market, said Wijaya.

Japan’s Nikkei Stock Average

NIK, +0.47%

  rose 0.5%, after closing at a 21-year high on Wednesday. The market’s strength came despite overnight appreciation in the yen, which usually weighs on export-related stocks.

The U.S. dollar

JPYUSD, +0.100553%

  last bought ¥112.38, compared with ¥112.48 yen at the end of Wednesday trade in New York.

Technology shares led gains in Japan, with SoftBank

9984, +4.04%

  rising 3.7% and Line

3938, +1.22%

 adding 1.3%. But energy stocks weakened, with Inpex

1605, -1.75%

  falling 1.8% and Japan Petroleum

1662, -0.69%

  shedding 0.8% following a drop in oil prices after data from the American Petroleum Institute showed U.S. crude inventories rose last week.

Although the API report showed U.S. oil inventories rose last week, analysts polled in a Wall Street Journal survey said they expect data from the U.S. Energy Information Administration due later Thursday to show a decline.

Oil futures in Asia were down about 0.6% in morning trade.

Elsewhere in the region, Korea’s Kospi

SEU, +0.22%

  added 0.2% to Wednesday’s record close, while Singapore’s Straits Times Index

STI, +0.68%

  was up 0.6% and Australia’s S&P/ASX 200

XJO, +0.24%

  rose 0.2%.

Technology stocks also helped Taiwan’s Taiex

Y9999, +0.55%

  rise 0.4% in early trade, with key Apple suppliers leading gains. Largan Precision

3008, +2.77%

  was up 1.7%, while Hon Hai

2317, +0.93%

  rose 0.9% and Taiwan Semiconductor

2330, +1.93%

  added 1.5%.

The Shanghai Composite Index

SHCOMP, -0.19%

  bucked broad gains the region, falling 0.2% as traders await new policy initiatives from the Communist Party Congress, which starts next week.

Hong Kong’s Hang Seng Index

HSI, +0.21%

  was slightly lower in morning trade, reversing early gains and adding to Wednesday’s declines.