AFP
Tokyo
Asian markets mostly rallied yesterday, with investors reversing a recent selloff spurred by a Wall Street recovery and indications the Federal Reserve will keep rates on hold until mid-2015.
The dollar was boosted by comments from US central bank policymakers, which analysts said suggested they have changed tack and will not start to lift rates from record lows until the first six months of next year.
Tokyo climbed 2.32%, or 390.32 points, to 17,210.05 as the greenback advanced against the yen, while Sydney jumped 0.95%, or 48.9 points, to close at 5,210.8.
Hong Kong gained 1.09%, or 246.37 points, to 22,832.21.
However, Seoul ended 0.14% lower, dipping 2.66 points to 1,897.50, while Shanghai lost 0.11%, or 3.50 points, at 3,057.52 following a four-day rally that saw it hit a four-year high.
In other markets, Taipei rose 0.57%, or 50.27 points, to 8878.63; Taiwan Semiconductor Manufacturing Co rose 0.77% to Tw$131.5 while Hon Hai was 0.59% higher at Tw$84.8.
Wellington added 0.40%, or 21.89 points, to 5,518.48; Trade Me was up 0.57% at NZ$3.52 and Chorus gained 0.75% to NZ$2.69.
Manila added 0.91%, or 63.07 points, to 7,029.28; Philippine Long Distance Telephone added 0.72% to 2,790pesos and Universal Robina Corp surged 2.04% to 189.80 pesos, but Ayala Land fell 0.45% to 32.85 pesos.
Kuala Lumpur added 1.07%, or 18.05 points, to 1,699.95; Malayan Banking rose 1.54% to 8.57 ringgit, while British American Tobacco fell 1.38% to 62.90.
Jakarta ended up 1.54%, or 77.70 points, at 5,113.35; palm oil producer Astra Agro Lestari rose 4.02% to 23,300 rupiah, while Indah Kiat Pulp & Paper lost 0.47% to 1,065 rupiah.
Singapore rose 0.51%, or 16.42 points, to 3,243.65; DBS Bank rose 2.36% to Sg$19.53 while warehouse operator Global Logistic Properties fell 3.21% at Sg$2.41.
Bangkok gained 2.47%, or 36.59 points, to 1,516.79; giant oil firm PTT Exploration and Production soared 6.82% to 117.50 baht, while coal producer Banpu rose 5.26% to 26baht.
The Fed’s policy committee said it “judges that it can be patient in beginning to normalise the stance of monetary policy,” adding that the decision will depend on economic data.
Policy, it said, was consistent with its prior statement that it would only begin raising rates “a considerable time” after its massive stimulus programme ended in October.
Although the change in language was subtle, “it was nevertheless a modification consistent with the view that rates are likely to rise in the first half of next year,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
The news sent US shares surging. The Dow rose 1.69%, the S&P 500 soared 2.04% and the Nasdaq jumped 2.12%.
And on currency markets, the dollar gained in New York to ¥118.63 from ¥117.07 in Tokyo earlier Wednesday. In Asian trade yesterday, the greenback was at ¥118.60.
The euro bought ¥146.34 and $1.2341, compared with ¥146.43 and $1.2343.
News that oil supplies in top consumer the US had dipped helped to push crude prices up slightly Wednesday, providing some respite from a recent plunge.
But yesterday in Asia, prices retreated again. US benchmark West Texas Intermediate for January delivery was 16 cents down at $56.31 while Brent crude for February eased 28 cents to $60.90.
Meanwhile, analysts said Russian moves to stabilise the rouble, which touched a record low against the dollar this week, seemed to be working.
Moscow said it would sell about $7bn in foreign reserves to prop up its currency and also implement other measures to prevent a selloff—soothing fears about Russia’s economic troubles spreading to the eurozone.
The moves helped the rouble to 58 against the dollar in early Moscow trade, well up from the 80 touched on Tuesday.
Gold was at $1,210.13 an ounce, compared with $1,197.34 late Wednesday.
