Asian stocks rise on Fed relief, dollar dips
Jul 10 2014 , Tokyo
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.