MUMBAI (NewsRise) -- Asian stocks outside of Japan rose Thursday, as a faster-than-expected U.S. inflation data did little to derail the recovery in global equity markets.
The Nikkei Asia300 Index advanced 1.1% to 1,445.81. Trading was subdued with Hong Kong, Malaysia, and Singapore having a half trading days, while markets in Taiwan, South Korea, Vietnam, and China were closed on account of the Lunar New Year holiday.
The S&P 500 Index rose 1.3% overnight. The benchmark index has added more than 3% in three sessions through Wednesday as equities recover from the rout suffered over the previous two weeks. Wednesday's advance was notable as it came against the backdrop of data that showed U.S. inflation rising at a quicker-than-anticipated pace, pushing 10-year yields to fresh four year highs. Analysts have blamed concerns over higher inflation expectations and rising bond yields for the recent turmoil in global equity markets.
CMC Markets analyst Ric Spooner said the equity market response to the inflation data was unexpected and probably it was on account of short covering.
"Buyers were waiting in the wings. When market strength emerged despite news of higher inflation, it seems they acted, forcing shorts to respond," Spooner said. "All this is typical behavior of an initial bounce following a volatile sell-off."
In major movers, Singapore-listed Thai Beverage, which recently acquired a majority stake in Vietnams Saigon Beer Alcohol Beverage Joint Stock Co, tumbled 6.6% after reporting a 62% drop in first-quarter net profit. Singapore Airlines advanced 2.1% after reporting a 2.4% increase in number of passengers in January from a year earlier.
In Mumbai, Nestle India added 3.9% after reporting a 60% increase in net profit for the December quarter. Sun Pharmaceutical Industries edged higher by 0.4%. The drug maker had declined earlier in the day after reporting a 75% decline in net profit for the October-December period.
In country indexes compiled by Nikkei, Hong Kong advanced 1% and India rose 0.9%.
The Nikkei Asia300 ASEAN Index of Southeast Asian companies gained 0.8%.