Asian Markets Recover As Italy’s Concerns Ease; Inflation Data Eyed

Asian equity markets were slightly higher on Thursday as traders began to digest Italy’s political turmoil while keeping an eye on fresh economic reports due later in the day.

In Japan, the Nikkei 225 benchmark was up 0.90 percent at 22,216.00 points. An overnight recovery in crude prices supported the index. The broader Topix grew 0.65 percent.

A similar dynamic was spotted in Australia, with the S&P/ASX 200 rising 0.45 percent, also based on gains by energy-related names.

Meanwhile, Seoul’s Kospi added 0.58 percent to end Thursday operations at 2,423.01 percent. Investors were cheered by news of a meeting between US Secretary of State Mike Pompeo and the vice-chairman of the Central Committee of the Workers' Party of Korea Kim Yong Chol.

Pompeo tweeted following the encounter: "Good working dinner with Kim Yong Chol in New York tonight. Steak, corn, and cheese on the menu."

Kim Yong Chol is the first North Korean top official to visit the United States since 2000. The White House confirmed the Trump-Kim summit remains on track for June 22 in Singapore.

Hong Kong's Hang Seng Index was trading 1.27 percent into green territory by the time of this writing. The Shanghai composite and the Shenzhen gained 1.86 and 1.72 percent respectively.

On the data front, China’s manufacturing Purchasing Managers’ Index (PMI) for May came in at 51.9 points, above an estimated reading of 51.4 points. The non-manufacturing PMI for May also outperformed expectations at 54.9 points.

Fear over Italy’s political future eased following reports the newly appointed Prime Minister Carlo Cottarelli held informal talks with President Sergio Mattarella.

Mattarella’s decision to appoint Cottarelli to lead the country is seen as a bloc to the ultra-right anti-EU opposition parties, which are currently leading opinion polls in the country.

Economic calendar:

Europe: Germany’s retail sales for April will be published at 06:00 GMT. Traders will also pay attention to Eurozone’s consumer price index for May at 09:00 GMT, as well as the unemployment rate for april, seen at 8.5 percent.

United States: Core PCE Price Index for April and initial jobless claims will be published at 12:30 GMT, along with personal spending for April. Pending home sales for April are scheduled at 14:00 GMT. The Energy Information Administration will release its weekly crude and refined product stockpile as of 15:00 GMT.

FortFS