By Chao Deng
Stocks in Australia and Hong Kong led gains in Asian markets
Thursday, after the U.S. Federal Reserve signaled it would move
cautiously on increasing interest rates.
The S&P/ASX 200 was up 1.3% at 5309, with bank stocks that
suffered in recent months trading higher. The broader Sydney index
was also bouncing from an eight-month low.
ANZ Banking Group was up 1.9%, Westpac gained 1.7% and National
Australia Bank gained 0.8%.
The Hang Seng Index rose 1.1% to 23520.56, with consumer
services and communications stocks leading the way. Strongest
gainers included casino operator Galaxy Entertainment Group , dairy
producer China Mengniu Dairy and retailer Belle International
Holdings , each up 2.4%.
Overnight, Fed minutes showed officials talked about possible
deflationary pressures from a stronger dollar, signaling that a
U.S. interest-rate increase may come later than expected. U.S.
stocks rallied on the news, recording their largest one-day gains
of the year Wednesday.
A postponing of a rate rise would benefit Asian markets as
investors would be less inclined to return to the U.S. to seek
returns. Meanwhile, investors in the region continue to monitor
international growth after downbeat global growth forecasts from
the International Monetary Fund earlier in the week.
In Hong Kong, pro-democracy demonstrators continue to occupy
select streets ahead of formal talks between student protesters and
government officials Friday. Selling on the Hang Seng in reaction
to the movement has eased, although investors expect negotiations
to drag out given that the two sides are far apart in their
demands.
Shares of Hong Kong-listed Tianhe Chemicals Group were down 40%
after the Chinese lubricants maker resumed trading Thursday. The
shares had been suspended for over a month after a group questioned
its earnings and revenue. Tianhe has denied the allegations. Late
Wednesday it said its third-quarter gross profit rose 44% from a
year earlier.
The Nikkei Stock Average gained 0.3%, with the help of
export-related stocks, after declining 1.2% yesterday.
Among auto makers, Mazda gained 1.5%, Toyota added 1.4% and
Nissan rose 0.8%. In the technology sector, electronics firm
Hitachi was up 1.2%, and semiconductor maker Toshiba Corporation
rose 1.1%.
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