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China’s Markit/Caixin services PMI came in at 53.4 in December, up from November’s 53.1 reading Reuters

While Asian stock market indices were trading mixed on Thursday (5 January), the Shanghai Composite was up 0.05% at 3,160.50 as of 5.44am GMT despite positive Wall Street close overnight and data showing growth in China's services sector.

US markets closed higher on Wednesday after minutes from the Federal Reserve's December meeting showed that officials had voted for the first interest rate increase in 2016 based on market reactions to Donald Trump winning the US presidential elections. The minutes showed that officials expected an aggressive fiscal policy after Trump takes office.

Kathy Lien, MD of foreign exchange strategy at BK Asset Management, said the minutes suggested that the US central bank was optimistic. Lien, however, added that this was based solely on the hope that Trump would be able to keep up with the promises he made on tax cuts and big spending during his campaign.

"In other words, the Fed is betting on Donald Trump delivering, which is a risky gamble," Lien was quoted as saying by CNBC.

Meanwhile, China has reported growth in its services sector with the Markit/Caixin services purchasing managers' index (PMI) coming in at 53.4 in December, up from November's 53.1 reading and marking a 17-month high. This comes just days after China reported an uptick in its manufacturing PMI as well. Such data go on to indicate renewed momentum in the world's second largest economy.

Indices in the region were trading as follows at 6.21am GMT:

Hong KongHang Seng Index22,474.76Up1.54%
JapanNikkei 22519,520.69Down0.37%
South KoreaKOSPI2,041.97Down0.18%
AustraliaS&P/ASX 2005,753.30Up0.29%

On 4 Jan, the FTSE 100 Index closed 0.17% higher at 7,189.74, while the S&P 500 Index closed 0.57% higher at 2,270.75.

Among commodities, oil prices declined amid doubts over oil producers sticking to their output cut promises. As of 1.10am EST, WTI crude oil was trading 0.17% lower at $53.17 (£43.07) a barrel, while Brent crude was trading 0.28% lower at $56.30 a barrel.