Asian markets opened higher tracking positive cues from the U.S., as the yen slumped to a one-month low and bonds continued their sell-off as bets for a U.S. Federal Reserve rate hike in 2016 increased.
Rate Hike Bets Rise
U.S. equities gained on Wednesday on the back of rising oil prices and positive economic data. The S&P 500 Index snapped a two-day losing streak, and closed 0.43 percent higher at 2,159.
A key measure of the U.S. services sector rose more than estimates, registering the fastest growth in almost a year. Institute of Supply Management's non-manufacturing index jumped to 57.1 in September, the highest level since October 2015. The August reading of 51.4 was the lowest in more than six years.
The odds for a Fed rate hike in December rose to 62 percent, according to futures rates tracked by Bloomberg.
The dollar index remained steady near a two-week high while the yen fell against the greenback for a seventh straight day.
Crude Nears $50 Per Barrel
Oil prices hovered around the $50 per barrel mark after U.S. stockpiles fell for the fifth straight week. Inventories fell by 2.98 million barrels last week. taking crude stockpiles below 500 million barrels for the first time since January, according to data from the Energy Information Administration. Analysts surveyed by Bloomberg had predicted a rise of 1.5 million barrels.
Oil ministers from Organization of the Petroleum Exporting Countries and non-OPEC producers will meet next week in Istanbul to discuss how producers outside the organization will join in the cut, Venezuelan Oil Minister Eulogio Del Pino said in a government statement.
Oil has gained nearly 10 percent since OPEC members agreed to cut output last week.
Steady Start?
The SGX Nifty index gained 0.32 percent to trade around the 8,800 mark as of 7:00 a.m., indicating a steady start for Indian equities that snapped their three-day gaining streak on Wednesday.
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