Most Asian markets closed higher on Thursday after an oil-price rally amid reports of potential production cuts
The Nikkei 225 Index recovered 228.31 points, or 1.4%, to 16,693.71,
In Hong Kong, the Hang Seng index picked up 119.82 points, or 0.5%, to 23,739.47
The Japanese yen retreated to 101.50 against the U.S. dollar, compared with levels as high as 100.23 in Asian hours on Wednesday.
Yen weakness sent Japanese export stocks higher, with Toyota shares up 0.4%, Honda rallying 1.3% and Canon adding 1.7%. A weaker yen is a positive for exporters as it expands their overseas profit numbers when converted into local currency.
Before market open, government data showed Japan's retail sales fell 2.1% on-year in August, which was more than a median market forecast for a 1.8% drop.
Markets in Australia progressed, with the energy sector rallying 6.3% and the materials sector gaining 2.8%
The Australian dollar, which is influenced by moves in oil prices, climbed from levels near $0.7650 U.S. in the overnight session to as high as $0.7710 on Thursday morning local time. As of late afternoon, the Aussie traded a touch lower at $0.7675 U.S.
Oil prices climbed sharply on Wednesday in the U.S., after members of the Organization of the Petroleum Exporting Countries reportedly reached an agreement to limit production to a range of 32.5 million to 33 million barrels per day, down slightly from its current estimated output at 33.24 million barrels a day.
The agreement, reportedly made at an informal meeting held on the sidelines of the International Energy Forum in Algiers, was a surprise. The meeting had been expected to end in stalemate over how to address a global oil supply glut which has hammered prices over the past two years. Reuters reported that OPEC would finalize an output reduction plan at its official meeting on November 30.
The slight pullback in oil prices did not appear to dampen sentiment among Asian energy names, as they rallied sharply. In Australia, Santos shares climbed 7.6%, Oil Search advanced 7%, Woodside Petroleum gained 7.3% and Beach Energy was up 10%.
Japan's Inpex advanced 5.7%, Japan Petroleum climbed 8.8% and Cosmo Energy was up 3.7%. Fuji Oil, however, bucked the trend to finish lower by 2.1%.
South Korea's S-Oil was up 3.9% while Hong Kong-listed Chinese oil names also climbed in late-afternoon trade, with shares of CNOOC up 5.7%, Petrochina advancing 3.4% and Sinopec up 4.4%.
In other markets
In Shanghai, the CSI 300 regained 13.5 points, or 0.4%, to 3,244.39
The Straits Times Index in Singapore restored 27.7 points, or 1%, to 2,885.71
In Taiwan, the Taiex Index returned after being shut down for several days by Typhoon Magi, gaining 76.38 points, or 0.8%, to 9,270.90
The Kospi index in Korea moved higher 15.66 points, or 0.8%, to 2,068.72
In New Zealand, the NZX 50 strengthened 53 points, or 0.7%, to 7,343.45
In Australia, the ASX 200 added 58.91 points, or 1.1%, to 5,471.26
