Asia report: Markets higher as global sentiment settles

Markets in Asia finished in the green on Thursday, recovering from several days of losses in the wake of global stability fears stoked by political turmoil in Italy.

In Japan, the Nikkei 225 was ahead 0.83% at 22,201.82, as the yen strengthened 0.06% against the dollar to last trade at JPY 108.84.

The broader Topix index was up 0.65% at 1,747.45 by the time Tokyo closed.

On the mainland, the Shanghai Composite added 1.86% to 3,097.94, and the smaller, technology-heavy Shenzhen Composite managed gains of 1.8% to 1,767.55.

South Korea's Kospi was up 0.58% at 2,423.01, while the Hang Seng Index in Hong Kong was 1.37% above the line at 30,468,56.

Stocks exposed to North Korea were higher in Seoul after reports emerged of a meeting between Pyongyang official Kim Yong Choi and US secretary of state Mike Pompeo.

Hyundai Cement was up 5.11%.

Sentiment was less rocky on Thursday, after Italy’s interim prime minister announced that possible plans for “the birth of political government” had surfaced.

Tensions had been high in the European country throughout the week after plans for a coalition of populist parties crumbled in the wake of a stand-off between parliamentarians and the president over members of the new government.

There was still some uncertainty, however, after Matteo Salvini of the populist right-wing Lega party said he would prefer another vote sooner to avoid political confusion.

“While this leaves open the possibility that a new political government will be formed, a fresh election is a possibility and nerves about Italy staying in the euro remain,” noted analysts at ANZ.

Oil prices were mixed, with Brent crude last up 0.21% at $77.66 per barrel and West Texas Intermediate losing 1.07% to $67.49.

In Australia, the S&P/ASX 200 ended the session ahead 0.45% at 6,011.90, with oil prices sending the energy subindex up 2.33%, with the materials sector close behind at 1.5% higher.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.1% at 8,658.79, led higher by milk supplier Synlait, which was up 5.1%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.14% at AUD 1.3179 and the Kiwi advancing 0.34% to NZD 1.4262.