Asia-Pacific markets traded higher on Thursday as investors balanced ongoing United States-Iran tensions in the Middle East with a busy earnings season and key economic data releases.
By 11:50 am AEST (1:50 am GMT), Australia's S&P/ASX 200 was trading 0.8% higher, Japan's Nikkei 225 gained 0.8%, and South Korea's KOSPI 200 advanced 3%.
South Korean equities were supported by stronger-than-expected economic growth data, with exports helping offset pressure from geopolitical uncertainty.
The South Korean economy expanded 0.6% quarter-on-quarter in the second quarter according to advance data from the Bank of Korea, ahead of 0.4% growth expected.
The result marked a slowdown from the previous quarter's 1.8% growth, which was the strongest quarterly expansion since the third quarter of 2020.
On an annual basis, South Korea's real gross domestic product increased 3.7% in the second quarter, slightly below the first quarter's 3.8% growth.
In Australia, labour market data showed unemployment remained steady despite a stronger-than-expected increase in employment.
The Australian Bureau of Statistics (ABS) reported the unemployment rate remained at 4.4% in June, matching expectations.
However, employment increased by 76,300, significantly exceeding forecasts of 15,000.
The number of unemployed people rose by 13,000, while the increase in employment was driven largely by part-time work.
ABS head of labour statistics Sean Crick noted:
“In June, we recorded a 76,000 person rise in employment, driven by a 47,000 person rise in part-time employment.
“Part of the growth in employment this month came from those who were waiting to start a job in May. This represents a stronger June movement than has been observed in recent years.
“We also continued to see higher numbers of people remaining employed this June, following elevated levels in the recent few months.”
Overnight in the United States, major indexes finished slightly lower as investors assessed corporate earnings and rising oil prices.
The Dow Jones Industrial Average was virtually unchanged, easing 0.01%, while the S&P 500 fell 0.1% and the Nasdaq Composite declined 0.6%.
In commodities, oil prices surged as geopolitical tensions intensified. ICE Brent crude settled 3.4% higher at US$94.07 per barrel, its highest level since 11 June.
Spot gold also advanced, rising 1.3% to settle at US$4,129.84 per ounce as investors sought defensive assets amid heightened uncertainty.
Chinese markets were mixed on Wednesday. The SSE Composite Index gained 0.1% to 3,867.0, while the CSI 300 declined 0.5% to 4,717.2.
Hong Kong's Hang Seng Index dropped 1% to 24,892.7, while India's BSE Sensex fell 0.9% to 76,755.1.
European markets closed broadly higher, with the UK's FTSE 100 rising 1.2% to 10,717.0, Germany's DAX adding 0.6% to 25,155.4, and France's CAC 40 gaining 0.9% to 8,437.9.
