Sydney Jumps 2%
Domestic politics were in the spotlight in Australia after Julia Gillard lost her position as Prime Minister to former leader Kevin Rudd in a crucial leadership vote of Labor Party lawmakers late Wednesday. The vote was aimed to improve the party's chances at winning the Federal elections scheduled for September.
"I don't think it's going to change the situation at the next poll. It seems to us that the opposition leader Tony Abbott is probably going to win the September election, and therefore, the Rudd change of leadership is perhaps an attempt to salvage the party base," said Kingsley Jones, founder and CIO at Jevons Global.
(Read More: Can Rudd Stop the Rout in the Aussie Dollar?)
Gold miner like Newcrest Mining ignored weakness in yellow metal prices to add 6 percent, while coal miner White Energy rose over 7 percent. Banks were also higher with a near-3 percent gain in Commonwealth Bank of Australia.
Shanghai Pares Gains
Banks rebounded after the benchmark seven-day repo rate - a gauge of the availability of funds in the interbank market - eased for a fifth straight session to around 6 percent, well-off last week's 11 percent high.
The People's Bank of China announced that it would not drain or inject funds from money markets on Thursday, and analysts said that this signaled a pause in its campaign to rein in informal lending. Agricultural Bank of China and China Construction Bank rose nearly 2 percent each.
(Read More: Is the Nikkei Taking Its Cue From China Markets?)
The Shanghai Composite still remains in bear market territory, down 20 percent from February's ten-month high, despite hitting an intra-day high of 1,980.