Asian markets notched moderate gains in early Thursday trade, tracking Wall Street’s advance as oil prices traded higher after touching multi-year highs overnight.
The Nikkei 225 edged higher by 0.42 percent in early trade. The Topix was up 0.18 percent, with gains led by its mining and oil subindexes, up 2.4 percent and 1.32 percent, respectively.
Moderate gains were similarly seen in South Korea as the benchmark Kospi rose 0.55 percent.
Down Under, the S&P/ASX 200 tacked on 0.41 percent as oil producers contributed to the index’s gains following oil’s overnight climb. Woodside Petroleum was up 4.14 percent in the morning.
Elsewhere, markets in Indonesia will be closed on Thursday.
Malaysia’s stock exchange will also be shut on Thursday and Friday following the country’s general election.
The country’s former leader, Mahathir Mohamad, led an alliance of opposition parties to an unexpected victory at the general election in the early hours of Thursday local time, upsetting the ruling Barisan Nasional coalition.
Oil prices continued their move higher after touching multiyear highs overnight as investors digested the impact renewed U.S. sanctions on Iran would have on oil supplies.
President Donald Trump had announced Tuesday that the U.S. would withdraw from the Iran nuclear deal. Washington will probably renew sanctions on the OPEC member after 180 days, unless some other deal is reached, Reuters reported.
U.S. crude futures rose 0.45 percent to $71.46 per barrel and Brent crude futures advanced 0.34 percent to trade at $77.47. Both contracts settled more than 3 percent higher in the last session.
The move higher in Asian markets came after U.S. stock indexes gained on Wednesday, with energy shares advancing on the move higher in oil prices overnight.
Also of note, the yield on the 10-year U.S. Treasury note crossed the 3 percent level on Wednesday.
On the corporate front, earnings are expected from Kakao, Rakuten, KDDI and Suzuki Motor.
Hong Kong’s CK Hutchison Holdings will also hold its annual general meeting on Thursday.
Malaysia’s central bank will also announce its interest rate decision later during the day, with economists polled by Reuters expecting it to hold its policy rate steady.