(MENAFN- AFP) Asian stock markets rose Thursday following a positive lead from Wall Street, as investors look ahead to an expected Bank of England rate cut and the release of US jobs data.
Oil prices extended gains in Asia, giving a lift to energy and mining stocks after mixed data from the US Department of Energy showed crude supplies up, but falling gasoline stock.
A better-than-expected reading on US private jobs also supported a Wall Street rally, with payroll firm ADP reporting that private US companies added 179,000 jobs in July, slightly better than expected.
"Oil has once again established itself as the central thematic behind the world's financial markets," said Chris Weston, an analyst for IG in Melbourne.
"US data was largely upbeat, with the ADP private payrolls providing some belief that Friday's non-farm payrolls will not be a repeat of the woeful print we saw in May."
The US is due to announce official job creation data for July on Friday, with markets looking for signs that could increase the likelihood of a hike in US interest rates.
Sydney rose 0.2 percent, while Hong Kong also got a lift after a heavy sell-off in the previous session, putting on 0.5 percent. Seoul added 0.2 percent while Jakarta, Manila and Bangkok were also up.
Tokyo rose 1.1 percent -- with a weaker yen helping exporters -- following a more than three percent drop in the previous two days.
The greenback climbed to 101.52 yen from 101.25 yen Wednesday in New York.
Shanghai ended up 0.1 percent as investors await the release of economic data next week, including on trade, investment and retail sales.
- 'Unconventional' -
The gains in Asia came after British stocks dipped as data suggested an economic hit from the Brexit vote, just ahead of a key Bank of England policy decision.
A gauge of activity in Britain's key services industry showed contraction in July, feeding fears the country will slip into recession this year.
Market watchers expect the BoE to cut interest rates to a record-low 0.25 percent from 0.5 percent, while some say there is the possibility of a boost to its bond-buying stimulus programme.
"The only question now is what their response will be," Craig Erlam, senior market analyst at OANDA.
"It seems the market is pricing in a rate cut and possibly some further quantitative easing, which while being the obvious response, may not be the most effective. The BoE may instead opt for something a little more unconventional."
In afternoon trade sterling fell to $1.3295 from $1.3316 in US trade.
Energy and mining companies gave Asia a lift, after oil prices rose Wednesday from several days of losses.
West Texas Intermediate rose 0.7 percent to $41.11 while Brent added 0.4 percent to $43.29.
Among the biggest gainers were Sydney-listed WorleyParsons, which ended more than four percent higher, while Origin Energy gained 2.4 percent and BHP Biliton climbed 1.2 percent. In Hong Kong, CNOOC put on 3.3 percent in the afternoon. Tokyo-listed Inpex added 2.9 percent.
- Key figures at around 0700 GMT -
Tokyo - Nikkei 225: UP 1.1 percent at 16,254.89 (close)
Shanghai - Composite: UP 0.1 percent at 2,982.43 (close)
Hong Kong - Hang Seng: UP 0.6 percent at 21,859.17
Euro/dollar: DOWN at $1.1145 from $1.1148
Pound/dollar: UP at $1.3295 from $1.3316
Dollar/yen: UP at 101.52 yen from 101.25
New York - DOW: UP 0.2 percent at 18,355.00 (close)
London - FTSE 100: DOWN 0.2 percent at 6,634.40 (close)
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