Asian stocks moved higher early Thursday, shrugging off a tepid open brought about by an unimpressive lead from offshore markets.

Wall Street finished in the red overnight, as investors digested mixed results from the banking sector as well as the release of lower-than-expected sales forecasts for fiscal 2016 by Wal-Mart.

The Dow Jones Industrial Average dropped nearly 1 percent, ending below the psychologically key level of 17,000 for the first time since October 7, on the back of declines in Wal-Mart and Boeing. The S&P 500 and Nasdaq Composite ended 0.5 and 0.3 percent lower respectively.

Mainland markets up

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China's share markets opened up on Thursday, with the Shanghai Composite edging up 0.4 percent.

The benchmark CSI300 Index elevated 0.6 percent, while the smaller Shenzhen Composite ticked down 0.5 percent.

Nikkei bounces 0.6 percent

Japan's Nikkei 225 index changed course in early trade to reclaim 18,000 points, after finishing under the level for the first time since October 2 in the previous session.

A tick down in dollar-yen probably encouraged risk appetite for exporters. Blue chips such as Toyota Motor and Sony pared earlier declines to rise 0.8 and 0.5 percent respectively, while Panasonic halved losses to 1.5 percent.

Counters which came under pressure due to their heavy exposure to China, also recovered their footing. Komatsu eked out marginal gains, while Fast Retailing, owner of clothing brand Uniqlo, bounced up 0.9 percent.

Defying the rebound, shares of Asahi Kasei tanked nearly 10 percent on the back of news that its subsidiary performed faulty installation of a portion of foundation piles in work for a Yokohama apartment complex, Reuters reported.

ASX gains 0.3 percent

Australia's S&P ASX 200 index nudged up, on course to snap a three-session losing streak, as the key resources sector enjoyed some reprieve following a sharp sell-off in previous sessions.

BHP Billiton and Rio Tinto rallied more than 1 percent each, while Fortescue Metals elevated nearly 6 percent on the back of news that the miner's production costs were beating its fiscal 2016 target.

Evolution Mining rocketed 10 percent, while Newcrest Mining and Kingsgate Consolidated soared 4.1 and 5.4 percent respectively, as gold prices hit a three-and-a-half-month peak after soft U.S. data and concerns over deflationary pressures in China fueled expectations that the Federal Reserve will hold off raising interest rates.

Energy producers also turned higher, with battered shares of Oil Search and Santos up 4.3 and 2.3 percent respectively.

A string of corporate news released before the market open were also eyed. Insurance Australia Group (IAG) soared 5 percent on the back of news that it plans to pause further investments in China. A statement released by the insurer on Thursday said that IAG will be pursuing "further growth opportunities in other Asian markets and our core businesses in Australia and New Zealand."

Australia and New Zealand Banking Group (ANZ), which said it will be selling its New Zealand medical insurance business to NIB NZ, dropped 0.9 percent.

Kospi rises 1.1 percent

South Korea's Kospi index headed further north in early trade, after the Bank of Korea (BOK) kept interest rates steady for a fourth straight month, in line with expectations.

The bourse's top two weighted stocks Samsung Electronics and Hyundai Motor climbed 1.4 and 0.3 percent respectively, while utility Kepco advanced 0.9 percent.

Lotte Group shares were in focus following new developments in a family feud that has shrouded the country's number 5 conglomerate in recent months. On Wednesday, chairman Shin Dong Bin lost his directorship at Japan-based Kojunsha Corp, the group's virtual holding firm, in the latest move taken by his older brother Shin Dong-joo amid a power struggle over control of the group.

Lotte Shopping and Lotte Chemical rose 1.2 and 3.1 percent respectively, but Lotte HiMart eased 1.5 percent. Lotte Confectionery traded flat.

Meanwhile, Bank Indonesia (BI) is also projected to stand pat on Thursday, maintaining its policy rate at 7.5 percent.

"The currency remains under pressure after a strong selloff on fears of U.S. monetary policy normalization," a note by Moody's Analytics released last Friday said.

First Published:Oct 15, 2015 7:25 AM IST