Asia equities extend holiday rally as energy plays lead

Asian equities delivered some last-minute Christmas cheer, continuing to rally on the last full trading day of the week before the holiday period.The recovery in oil prices lifted energy stocks in the region, with US crude nearly 1 percent higher in Asia trade following a 4 percent rally overnight. Data on Wednesday showed US crude inventories fell by 5.9 million barrels in the last week, compared with expectations for an increase of 1.1 million barrels."Judging by the moves in oil overnight, one could be forgiven for thinking that Santa's sleigh runs on Light-Sweet Cushing, Oklahoma Crude....Of course, this looks like a temporary bounce with plenty of potential for further declines next year when Iran begins exporting oil again," said IG market strategist Angus Nicholson in a morning note.More healthy economic data saw all three major US averages rally 1 percent overnight, their third day of gains. U.S. personal consumption expenditures rose 0.3 percent on-month in November after remaining flat in October, adding to the market's optimistic mood one day after better-than-expected third-quarter growth data.Sydney, Hong Kong, Singapore and Wall Street will see half-day trading on Thursday while Tokyo and Shanghai will be the only major markets open on Friday.Shanghai flatChina's benchmark Shanghai Composite was little changed in early trade after snapping a two-day rally on Wednesday.Insurers were in focus after regulators issued tighter disclosure requirements for firms when buying stakes in listed companies in an attempt to curb investment risks. China Life Insurance and New China Life Insurance rose 1 percent each.Meanwhile, the yuan strengthened to 6.4777 per dollar after the People's Bank of China said late on Wednesday that it will extend the currency's trading hours starting January 4. By doing so, trading in the Chinese forex market will overlap with European trading hours, which will boost Beijing's goal of internationalizing the currency.Hong Kong's Hang Seng Index added 0.7 percent with oil producers Petrochina, Sinopec and CNOOC leading gains by 3 percent eachNikkei up 0.6 percentJapan's Nikkei index resumed trade higher after being shut on Wednesday for a public holiday. Minutes from the Bank of Japan's November policy review released before the market open confirmed the central bank's easing bias, with members saying policy adjustments should be necessary if the underlying trend in inflation changes.Oil plays Inpex and JGC Corporation shot up more than 3 percent each while Show Shell Sekiyu added 2 percent.Toshiba spiked as much as 2 percent on news that India may sign a deal with its unit Westinghouse to build six nuclear reactors. The rally is a sigh of relief for the troubled electronics maker after it warned of a record annual loss of $4.5 billion earlier this week, sending shares to six-year lows.ASX gains 1.1  percentAustralia's benchmark S&P ASX 200 index hit a more than two-week high, up for the seventh straight session.In the resource sector, miners BHP Billiton, Rio Tinto and Fortescue Metals added 3-4 percent each despite iron ore prices falling below $40 a ton overnight, while energy plays Oil Search and Beach Energy soared 5 percent each.Financials also rallied; National Australia Bank, Australia New Zealand Banking, Commonwealth Bank of Australia and Westpac rose over 1 percent each.Kospi 0.3 percent higherSouth Korean shares hit a new three-week high, on track to post a near 2 percent gain for the week.Hyundai Motor added 0.7 percent after finally reaching a deal with its labor union that could avoid major production losses at its biggest manufacturing base. The agreement is subject to a vote by union members on Monday.Retailed ignored data showing consumer sentiment fell to a three-month low in December, with Lotte Shopping and Hyundai Department Store up 0.3 percent each.