Asian shares rose on Thursday, buoyed by a late recovery on Wall Street after US politicians appeared close to a temporary deal to avert a federal debt default, and after Russia reassured Europe with gas supplies, which calmed volatile markets.

Oil prices also fell from multi-year highs reached a day earlier, a major factor in this week's sell-off in equities, while US Treasury yields and major currencies stabilised amid a calmer mood.

MSCI's broadest index of Asia-Pacific equities outside Japan rose 1.25 per cent in early trading, recovering ground lost in recent days and little changed in the week.

"The surge in energy prices has clearly contributed to the latest rise in bond yields, which has been accompanied by weakness in stock markets around the world," analysts at Indonesia's https://exness1.org/ wrote.

After oil prices fell on Thursday, stock indices in Korea rose 1.3%, Australia rose 0.64% and Hong Kong rose 2%.

Japan's Nikkei gained 0.89% and US S&P 500 e-minis stock index futures added 0.42%.

Chinese markets remained closed due to the holiday.

US crude oil fell 0.34% to $77.17 a barrel, continuing its fall since late Wednesday after hitting a seven-year high of $79.78 earlier in the day. Brent crude remained steady at $81.04 a barrel, down from a three-year high of $83.47 also hit on Wednesday. [OR]

The fall followed an unexpected rise in US oil inventories.

Gas prices also fell a day after Russian leaders indicated supplies to Europe could increase, contributing to a late rally on Wall Street after European stock markets fell.

The Dow Jones Industrial Average rose 0.3%, the S&P 500

Fears of a US debt default put pressure on stocks along with rising energy prices.

The next event in the US, which will be the focus of global investors, will be the employment data on Friday and investors expect a reasonable figure to mean the US Federal Reserve will start cutting a massive stimulus programme at its November meeting.

The dollar remained steady, not far from the 12-month high reached last month against a basket of currencies, and held at a 14-month high against the euro.

The 10-year Treasury bond yield was down 1.5415% from Wednesday's three-and-a-half-month high of 1.573%.

"Sentiment and dynamics are volatile, leading to a change in risk appetite," Westpac US rates analysts wrote.

"The price movement is linked to stock market fluctuations, an aggressive Fed outlook and fears of stagflation as rising oil prices and debt ceiling-related policies threaten the domestic economy."

Spot gold was little changed, trading at $1,761.89 an ounce.