Most Asian markets closed higher on Thursday after an oil-price rally amid reports of potential production cuts, but India's shares dropped after reports that the Indian army conducted strikes against militants in the disputed region of Kashmir.
The Nifty 50 index closed down 1.76 percent, while the Sensex was off 1.64 percent. The Indian rupee fell from levels as low as 66.3175 against the dollar to as high as 66.9450 following the news of the strikes.
Reuters reported India has conducted "surgical strikes" on militants in Pakistan it suspects of preparing to infiltrate parts of Indian-controlled Kashmir, which Pakistan was later reported to have denied. This came amid escalating tension between New Delhi and Islamabad, following an attack on an Indian army base in India-administered Kashmir.
Australia's ASX 200 closed up 58.95 points, or 1.09 percent, at 5,471.30, with the energy sector rallying 6.32 percent and the materials sector gaining 2.84 percent.
The Australian dollar, which is influenced by moves in oil prices, climbed from levels near $0.7650 in the overnight session to as high as $0.7710 on Thursday morning local time. As of 2:35 p.m. HK/SIN, the Aussie traded a touch lower at $0.7675.
Stephen Innes, a senior trader at OANDA, said on Thursday that while the bounce in commodities helped to push the Aussie dollar higher, sentiment is also "underpinned by a growing consensus that the Reserve Bank of Australia will remain on hold for the foreseeable future."
This, Innes said, underscored the market's view of the Aussie as a "safe-haven high yielder."
Across the Korean Strait, the Kospi advanced 15.66 points, or 0.76 percent, to 2,068.72.
Hong Kong's Hang Seng index traded nearly flat at 23,638.77 in late-afternoon trading, after erasing most of its earlier gains. Mainland Chinese markets were higher, with the Shanghai composite closing up 10.37 points, or 0.35 percent, at 2,998.23, and the Shenzhen composite adding 7.62 points, or 0.38 percent, to 1,985.92.
Oil prices climbed sharply on Wednesday in the U.S., after Reuters reported OPEC members had reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day, down slightly from its current estimated output at 33.24 million barrels a day.