Asian stocks rise on Fed relief, dollar dips

Tags: Stock Market
Asian equities rose and the dollar dipped on Thursday, after the Federal Reserve indicated that it was not in a rush to end quantitative easing and begin hiking rates.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2%.

Tokyo's Nikkei rose 0.1%, despite a sharp drop in machinery orders reported minutes before the opening bell.

Japan's core machinery orders unexpectedly fell 19.5% in May from the previous month, casting doubt over the outlook for a pickup in capital spending.

But markets were more focused on the Fed.

According to minutes from the last Federal Reserve meeting released on Wednesday, the central bank acknowledged the recent strengthening in the US economy but suggested it was unlikely to raise policy rates until the second half of 2015.

"The Fed Minutes did not deliver anything new. In practice this is dovish as almost all market participants who expected a shift from the statement/press conference were on the hawkish side," strategists at CitiFX wrote in a note to clients.

"No one expected a more dovish message so the hawks are caught offside."

The absence of a more hawkish message from the Fed eased worries over interest rate hikes and helped Wall Street snap a two-day slide on Wednesday, while driving US Treasury yields lower.

The dollar slipped 0.1% to 101.58 yen, weighed by lower Treasury yields. The yen was little fazed by the machinery order decline.

The euro stood little changed at $1.3643 after gaining more than 0.2% against the greenback the previous day.

Traders were also awaiting China trade data due around 0200 GMT.

The data will give the markets a chance to gauge whether a recovery is taking hold in the world's second-largest economy following a flurry of government stimulus.

China's exports are forecast to rise 10.6% in June from a year ago, faster than May's 7% expansion and the best showing in five months. Imports likely snapped back into positive territory, growing 5.8%, after May's 1.6% drop.

In commodities, crude oil extended losses after falling on faltering US demand for gasoline and a Libyan oil field resuming output.

US crude fell 0.45% to $101.83 per barrel.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

Biogas Potential in India

Biogas is a form of renewable energy produced from organic ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture