Investing.com - Asian stock markets were mostly steady in cautious trade on Thursday, with shares in Japan outperforming as renewed optimism in the U.S. economic recovery supported sentiment ahead of a key European Union summit scheduled to begin later in the day in Brussels.
During late Asian trade, Hong Kong's Hang Seng Index edged up 0.2%, Australia’s ASX/200 Index ended flat, while Japan’s Nikkei 225 Index rallied 1.7%.
U.S. equities advanced overnight after a report by the National Association of Realtors showed that pending home sales jumped 5.9% in May, blowing past expectations for a 1% increase, to match a two-year high hit in March.
Another report showed that U.S. durable goods orders rose by a seasonally adjusted 1.1% in May, beating expectations for a 0.4% increase, indicating that the manufacturing sector is stabilizing following a 0.2% drop in May.
The U.S. is a crucial market for the region's exporters.
But investors remained cautious ahead of a two-day EU summit due to begin later in the day, amid worries the talks will not result in any effective steps to strengthen fiscal integration and allow the euro zone’s rescue funds to buy government debt.
Hopes that European leaders would make headway on dealing with the debt crisis in the region faded after German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds on Wednesday.
In Tokyo, the Nikkei rallied sharply on the back of strong gains in exporters, which were encouraged by the U.S. data.
Shares in automakers Toyota, Nissan and Honda all rose between 1.8% and 2.65%. Canon shares added 1.15%, while Panasonic rose 2.1%.
Japanese stocks also gained after the Trade Ministry said retail sales climbed 3.6% from a year earlier, beating expectations for a 2.9% increase.
Elsewhere, shares in Hong Kong were steady as investors remained on the sidelines ahead of the start of the crucial EU summit, amid fading hopes for concrete progress on tackling the region’s three-year old debt crisis.
Gains in index heavyweights HSBC Holdings and CNOOC provided support to the market. HSBC shares, which command a 15% weighting on the Hong Kong benchmark, rose 1%, while CNOOC shares added 3%.
Meanwhile, shares in Australia held steady, supported by gains in miners, which firmed on the back of rising metal prices.
BHP Billiton and Newcrest Mining shares added 0.6% respectively, while Rio Tinto gained 0.3%.
Looking ahead, the outlook for European stock markets was mildly upbeat ahead of a European Union summit, but sentiment remained vulnerable amid growing skepticism over whether an upcoming European Union summit would yield progress on tackling the region’s debt crisis.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures rose 0.1%, London’s FTSE 100 futures added 0.2%, while Germany's DAX futures pointed to a gain of 0.15% at the open.
Later in the day, Germany was to produce official data on unemployment change, while the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.
During late Asian trade, Hong Kong's Hang Seng Index edged up 0.2%, Australia’s ASX/200 Index ended flat, while Japan’s Nikkei 225 Index rallied 1.7%.
U.S. equities advanced overnight after a report by the National Association of Realtors showed that pending home sales jumped 5.9% in May, blowing past expectations for a 1% increase, to match a two-year high hit in March.
Another report showed that U.S. durable goods orders rose by a seasonally adjusted 1.1% in May, beating expectations for a 0.4% increase, indicating that the manufacturing sector is stabilizing following a 0.2% drop in May.
The U.S. is a crucial market for the region's exporters.
But investors remained cautious ahead of a two-day EU summit due to begin later in the day, amid worries the talks will not result in any effective steps to strengthen fiscal integration and allow the euro zone’s rescue funds to buy government debt.
Hopes that European leaders would make headway on dealing with the debt crisis in the region faded after German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds on Wednesday.
In Tokyo, the Nikkei rallied sharply on the back of strong gains in exporters, which were encouraged by the U.S. data.
Shares in automakers Toyota, Nissan and Honda all rose between 1.8% and 2.65%. Canon shares added 1.15%, while Panasonic rose 2.1%.
Japanese stocks also gained after the Trade Ministry said retail sales climbed 3.6% from a year earlier, beating expectations for a 2.9% increase.
Elsewhere, shares in Hong Kong were steady as investors remained on the sidelines ahead of the start of the crucial EU summit, amid fading hopes for concrete progress on tackling the region’s three-year old debt crisis.
Gains in index heavyweights HSBC Holdings and CNOOC provided support to the market. HSBC shares, which command a 15% weighting on the Hong Kong benchmark, rose 1%, while CNOOC shares added 3%.
Meanwhile, shares in Australia held steady, supported by gains in miners, which firmed on the back of rising metal prices.
BHP Billiton and Newcrest Mining shares added 0.6% respectively, while Rio Tinto gained 0.3%.
Looking ahead, the outlook for European stock markets was mildly upbeat ahead of a European Union summit, but sentiment remained vulnerable amid growing skepticism over whether an upcoming European Union summit would yield progress on tackling the region’s debt crisis.
The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures rose 0.1%, London’s FTSE 100 futures added 0.2%, while Germany's DAX futures pointed to a gain of 0.15% at the open.
Later in the day, Germany was to produce official data on unemployment change, while the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.