Positive global indicators augured well for North American stock markets early Thursday as crude oil prices rose ahead of the latest U.S. inflation report.

Wall Street futures also suggested a strong start for regular trading and European indexes moved upward in early trading.

Asian markets closed mixed, with the region’s biggest exchange in Japan reaching a four-year peak while stocks in Hong Kong and South Korea fell slightly. New Zealand stocks hit a record high going into this weekend’s election.

Japan’s Nikkei 225 index increased 152.53 points, or 1.19%, to close at 12,986.78 points, its highest point since June 22, 2001.

In Hong Kong, shares fell on concerns about a possible interest rate hike in the U.S., pulling the Hang Seng Index down 45.6 points, or 0.3%, to 15,041.02.

The Canadian dollar opened Thursday at 84.32 U.S. cents, down 0.37 of a cent. On Wednesday, the loonie had risen 0.04 of a U.S. cent.

Crude oil prices rose Thursday, holding above US$65 a barrel after American petroleum data showed a dip in crude stocks but a rise in gasoline inventories, hinting that skyrocketing gasoline prices are dampening demand.

October light sweet crude on the New York Mercantile Exchange rose 36 U.S. cents to US$65.45 a barrel in European electronic trading.

On Wednesday night, Connor Bros. Income Fund, which produces canned sardines, tuna and other food products, warned it is lowering its expectations for the second half of 2005, in part because of hurricane Katrina. Also, on Wednesday, Delta Air Lines Inc., and Northwest Airlines Corp., hobbled by high fuel costs and heavy debt and pension obligations, filed for bankruptcy protection from creditors, bringing to four the number of major U.S. carriers seeking protection since 9/11.

Southern Cross Resources Inc. announced it has signed a stock swap deal to acquire Aflease Gold and Uranium Resources Ltd. of South Africa. The deal will combine Aflease’s South African uranium and gold assets with the Australian and Canadian uranium businesses of Southern Cross.

Toronto stocks rallied Wednesday, as oil prices lifted and the energy sector spiked.

The S&P/TSX composite index finished up 107.21, or 0.99%, to 10.932.41.

Volume on the senior exchange was 253 million shares.

Seven of the 10 TSX main sub-groups were up, with the energy group lifting 2.5%.

Light, sweet crude for October delivery closed up US$1.98 to settle at $65.09 a barrel, after the U.S. Energy Department reported that hurricane Katrina caused domestic crude stocks to fall by 6.6 million barrels last week.

EnCana rose $1.97, or 3.38%, to $60.22 after its Brazilian subsidiary announced an oil discovery off the coast of the South American country.

OPTI Canada Inc. announced a $3.5-billion oil sands joint venture with Nexen Inc. OPTI’s shares jumped $3.09, or 7.99%, to $41.75, while Nexen gained $2.35, or 4.31%, to $56.90.

The gold sector climbed 3.89% after gold futures closed up US$3.70 at $453.70 an ounce.

The consumer discretionary sector gained 0.78%.

Sears Canada said it will distribute $2 billion from the sale of its credit and financial services division through an extraordinary dividend and will look to cut costs. Sears shares gained $3.65, or 11.85%, to $4.45.

Dofasco’s shares dropped 25 cents, or 0.53%, to $46.80 after the company said it expects its third-quarter earnings will be lower than analysts’ forecasts.

In economic news, Statistics Canada reported widespread declines in the manufacturing sector in July that pulled down shipments by 1.4% to $50.1 billion and new orders by 0.4% to $51.1 billion. Unfulfilled orders, however, lifted by 2.4% to $41.6 billion, the highest level since late 2002.

The junior S&P/TSX venture exchange finished up 23 points, or 1.16%, to 2,010.78.

The Dow Jones industrial average fell 52.54 points at 10,544, the S&P 500 closed 4.04 points lower at 1,227.16 and the Nasdaq composite dropped 22.42 points at 2,149.33.