HONG KONG — Asian markets mostly rallied Thursday, with investors reversing a recent sell-off spurred by a Wall Street recovery and indications the Federal Reserve will keep rates on hold until mid-2015.
Pedestrians are reflected on an electronic stock board of a securities firm in Tokyo on Thursday. Asian stock markets powered higher, sweeping aside worries about a flagging global economy after the Federal Reserve said it would remain "patient" in its approach to raising interest rates. (AP photo)
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 and Manila added 0.91%, or 63.07 points, to 7,029.28.
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.
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.
On currency markets, the dollar gained in New York to 118.63 yen from 117.07 yen in Tokyo earlier Wednesday. In Asian trade Thursday, the greenback was at 118.60 yen.
The euro bought 146.34 yen and $1.2341, compared with 146.43 yen and $1.2343.
Meanwhile, Europe's main stock markets opened strongly on Thursday following rallies in Tokyo and on Wall Street as dealers welcomed the outcome of the US Federal Reserve policy meeting.
At the start of trading, London's benchmark FTSE 100 index climbed 0.44% to stand at 6,364.64 points compared with Wednesday's close.
Frankfurt's DAX 30 soared 1.75% to 9,711.61 points and in Paris the CAC 40 won 1.81% to 4,186.26 compared with Wednesday's close.