Asian Markets Edge Higher Amid Optimism on Russia-Ukraine Talks and Energy Gains

Asian stock markets are trading mostly higher on Thursday, buoyed by positive signals from Wall Street and a rebound in crude oil prices to eleven-year highs. The optimism is further supported by ongoing diplomatic efforts to resolve the Russia-Ukraine conflict. Markets had closed mostly lower the previous day, but traders are now showing renewed confidence. Federal Reserve Chair Jerome Powell reiterated the central bank's stance on raising interest rates in March, despite acknowledging the economic uncertainty caused by the war in Europe. The Australian stock market is significantly higher, extending its four-session winning streak. The S&P/ASX 200 Index is up 0.72 percent at 7,168.20, while the broader All Ordinaries Index is rising 0.79 percent to 7,465.10. Energy and mining stocks are among the top performers, with BHP Group and Mineral Resources gaining over 3 percent each. Oil stocks such as Santos and Origin Energy are also seeing strong gains, with Beach Energy surging nearly 5 percent. Major banks like Commonwealth Bank and National Australia Bank are edging up slightly, while tech stocks show mixed performance. Economic data from Australia highlights a rebound in the services sector, with the Markit services PMI rising to 57.4 in February from 46.6 in January. This marks a return to expansion territory after a period of contraction. However, building permit data showed a sharp decline in January, with total permits falling 27.9 percent on a monthly basis. Despite this, Australia's merchandise trade surplus widened to A$12.891 billion in January, exceeding expectations and driven by strong export growth and declining imports. The Japanese stock market is modestly higher, recovering from recent losses, while other regional markets are also showing positive momentum. Traders remain cautious about the potential for further interest rate hikes and the ongoing geopolitical tensions, but the current upward trend suggests a temporary shift in sentiment. The performance of energy and mining sectors is likely to remain a key driver for the region's markets in the near term.