HONG KONG - Asian markets rose on Thursday, led by Hong Kong after the city's traders extended an impressive start to the year thanks to optimism over China's reopening and officials there making key policy changes to encourage investment.
Oil prices also staged a mild rebound but remain under pressure after losing around nine percent in the previous two days owing to demand concerns.
Asia's advance tracked a rally on Wall Street, which came even as minutes from the Federal Reserve's December meeting showed officials intended to keep lifting rates to fight decades-high inflation.
The upbeat mood has been boosted by signs that China is implementing policy changes to make it a more attractive investment location.
A decision allowing Ant Group to raise $1.5-billion in funding was seen as an indication that authorities' long-running crackdown on the tech sector could be coming to an end, and fresh measures to support the struggling property sector have also been unveiled.
Reports that Beijing was considering lifting a two-year ban on some imports of Australian coal, as well as a slight thawing of ties with Washington, were also providing some hope for the year ahead.
That all comes against the backdrop of the rollback of the country's harsh zero-Covid policy, which had sapped economic growth since the start of the pandemic.
The move has fanned hopes that the world's second-largest economy will bounce back after three years of lockdowns and tough restrictions, though the surge in infections in recent weeks has also raised concerns about the near-term outlook.
"The medium-term prospects still appear quite bullish, especially if China can bounce back strongly later this year and fully transition to living with Covid, like much of the rest of the world," said analyst Craig Erlam.
Hong Kong rose more than one percent to a six-month high, while Shanghai, Tokyo, Singapore, Sydney, Seoul, Wellington, Taipei and Manila also climbed.
However, London, Paris and Frankfurt opened down.