Asia report: Markets higher as energy shares rally

Japan’s Nikkei 225 was up 1.39% at the close to 16,693.71, while the broader Topix added 0.94% to 1,343.25.

Energy shares were boosted by the OPEC reports, with Cosmo Energy adding 3.3%, Inpex up 5.69% and Japan Petroleum climbing 8.84%.

Fuji Oil was the odd one out, losing 2.06% during the session.

The yen retreated from its strong showing at the 100 level against the greenback on Wednesday, and was last 0.68% weaker at JPY 101.37 per $1.

On the mainland, the Shanghai Composite was up 0.35% at 2,998.23, and the Shenzhen Composite added 0.38% to 1,985.92.

South Korea’s Kospi managed a 0.76% rise to 2,068.72, while the Hang Seng Index in Hong Kong was up 0.51% to 23,739.47.

Seoul-listed S-Oil was up 3.87%, joining the energy-based party of risers in the region, while Hong Kong-listed shares in CNOOC were up 5.72%, with Petrochina adding 3.41% and Sinopec climbing 4.4%.

Oil prices were up sharply overnight in the US, after reports emerged that OPEC members managed to agree to limit production to between 32.5 million and 33 million barrels per day, a slight decrease from its current estimated production of 33.24 million barrels daily.

The production freeze had been on the table for months, but on Wednesday traders looked to be giving up hope that it could be agreed on the sidelines of an energy conference in Algeria - before the surprise report that it had been agreed.

“OPEC has indeed set the stage for a decisive oil deal in November, following the conclusion made in its informal meeting,” noted analysts at OCBC Bank in Singapore.

Crude prices retreated slightly from their overnight surge during Asian trading, however, with Brent crude last down 0.98% at $48.22 per barrel and West Texas Intermediate losing 0.64% to $46.75.

In Australia, the S&P/ASX 200 added 1.09% to 5,471.30, with the energy subindex surging 6.32% and materials rising by 2.84%.

Sentiment around energy stocks was boosted by the OPEC news, with Beach Energy adding 10%, Oil Search up 7.03%, Santos advancing 7.62% and Woodside Petroleum climbing 7.28%.

New Zealand’s benchmark S&P/NZX 50 rose 0.7% to 7,343.45, led by technology firm Orion Health Group, which rose 4.5%.

The company had hit a six month low on Wednesday, having been sold off since chairman Andrew Ferrier told shareholders last week that the strong New Zealand dollar was strangling its overseas earnings.

Both of the down under dollars were weaker against the greenback, with the Kiwi last retrrating 0.21% to NZD 1.3757 and the Aussie 0.39% weaker at AUD 1.3051 per $1.