Asian markets edge up, but Nikkei reverses early gains Concerns over monetary easing weigh on Japan

Shares in Asia were broadly higher Thursday on an overnight rebound in oil prices, though Japan’s Nikkei reversed early gains amid uncertainties over monetary easing.

Oil price weakness had weighed on the region’s stocks in recent days, but prices moved back above the $40 a barrel mark late Wednesday following a larger-than-expected decline in gasoline inventories.

Among major commodity-reliant markets, Australia’s S&P/ASX 200   was up 0.3% at 5483.50, while the FTSE Bursa Malaysia Index   gained 0.3% and Singapore’s Straits Times Index   was up 0.1%. Brent crude prices were last up 0.7% in Asian trade at $43.39 a barrel.

Companies linked to the oil and gas sector were the key outperformers early Thursday, and in Singapore, shares of major oil rig builders Keppel Corp.   and Sembcorp  gained 0.6% and 0.8%, respectively.

Still, overall gains for the rest of the region were capped, with the Korean Kospi   up 0.2%, and Hong Kong’s Hang Seng Index   rising 0.4%. Meanwhile in China, the Shanghai Composite Index   was down 0.4%.

“Concerns around Japanese stimulus are still disappointing the market,” said Alex Wijaya, a senior sales trader at CMC Markets.

An apparent lack of commitment to more easing by Bank of Japan Deputy Governor Kikuo Iwata on Thursday offset oil-related support for local stocks, sending the Nikkei Stock Average   down 0.6% and reversing from slight gains at the session’s open.

“I believe the BOJ will continue its accommodative monetary policy and its role as a buyer in the bond market,” said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.

“But there is wide ranging speculation about what might be tweaked now. It’s going to be volatile for the markets,” he said.

Shares of many Japanese firms reacted to their earnings results, with carmaker Suzuki Motor Corp  rising 4.4% to ¥3202, after the company posted solid profit growth in the April-June quarter, helped by sales expansion in India and Europe. Meanwhile, optics product maker Olympus Corp.   tumbled 5.9% to ¥3,200 after the company cuts its sales and profit forecasts for the year ending in March 2017, citing the yen’s rapid rise.

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