By Chao Deng
Stocks in Japan and Australia jumped early Thursday on signals
from the U.S. Federal Reserve that it is not in a hurry to raise
interest rates, encouraging investor risk appetite.
The Nikkei Stock Average surged 2.3% while the S&P ASX 200
gained 1.5%, after U.S. stocks rallied to the Fed's pledge to keep
interest rates low for a "considerable time."
The indication by the central bank was a relief for the region,
after an emerging market selloff earlier in the week had investors
fleeing the rupee, rupiah, and stocks and bonds in pockets of
southeast Asia.
A longer timeline for rate hikes implies that stocks will
continue to be more appealing to investors compared with the low
returns on bonds.
Still, the U.S. dollar rose as Fed Chairwoman Janet Yellen
tempered the message, saying "no meeting is off the table" as an
option for when to raise rates. The greenback was at 118.80 yen,
from 117.67 yen before the Fed meeting's conclusion on Wednesday. A
stronger greenback is often beneficial for Japanese exporters
earning in dollars abroad.
Elsewhere, Korea's Kospi was up 0.4% and Singapore's Strait
Times was up 0.3%. Taiwan's Taiex was 0.8% higher.
Write to Chao Deng at Chao.Deng@wsj.com
Access Investor Kit for ASX Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=AU000000ASX7