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 Hang Seng Index rose 1.2% to 23,534.53, led by gains from
communications stocks. Among the strongest gainers were retailer
Belle International Holdings Ltd. , up 4.3%, China Mobile Ltd. , up
3.2%, and China Unicom Ltd. , up 2.6%.
The S&P/ASX 200 was up 1.1% at 5,296.70, bouncing from an
eight-month low, as all sectors rallied. Within the banks,
Commonwealth Bank of Australia rose 1.6%, Australia & New
Zealand Banking Group Ltd. added 1.7% and Westpac Banking Corp.
improved 1.8%.
Fed minutes from overnight showed that officials discussed
possible deflationary pressures from a stronger dollar, signaling
that a U.S. interest-rate increase may come later than expected.
The news helped U.S. stocks record their largest one-day gains of
the year, which set a positive tone for Asia on Thursday. A later
rate increase would benefit Asian markets, as investors would be
less inclined to flock to the U.S. for returns.
In Hong Kong, pro-democracy demonstrators continue to occupy a
few 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 because the two sides are far apart.
Shares of Hong Kong-listed Tianhe Chemicals Group , which
resumed trading Thursday, were down 39.8%. The stock had been
suspended for more than a month after "hacktivist" group Anonymous
Analytics accused it of falsifying some financial reporting. Tianhe
denied the allegations and on Wednesday, it said third-quarter
gross profit rose 44% from a year earlier.
The Nikkei Stock Average fell 0.8% to 15,478.93, making it the
only major Asian index to finish in the red. A weaker dollar, on
the back of lowered expectations for rising rates in the U.S.,
pushed shares of Japanese exporters down. The dollar (USDJPY)
traded at Yen107.85, down from Yen108.09 late Wednesday in New
York.
Among auto makers, Mazda lost 1.9%, Toyota Motor Corp. was down
0.2% and Nissan fell 0.1%. In the technology sector, electronics
firm Hitachi lost 1.3%, and semiconductor maker Toshiba Corp. fell
1.9%.
Bucking the trend were retail stocks. Fast Retailing Co. Ltd. ,
the heaviest-weighted Nikkei component, was up 1.5% ahead of the
company's full-year business results. Last week, the firm's Uniqlo
unit reported a sharp rise in September same-store sales.
ABC-Mart Inc. surged 6.5% after the shoe retailer booked
first-half results that exceeded guidance. Sales rose 15% from a
year earlier, while operating profits increased 24%; management
also increased its full-year operating profit forecast.
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