Asian Shares Rise on Fed Stance

Stocks in Japan and Australia made gains for a second day on Friday, as investor confidence continued to be bolstered by expectations the U.S. is in no rush to raise interest rates.

The Nikkei Stock Average was up 1.8% while Australia's S&P ASX 200 was up 1.4%.

Japan and Australia are outperforming the Asia Pacific region this week, while benchmarks in Asian emerging markets--Vietnam and the Philippines in particular--have been battered by a combination of concerns that include declining oil prices, the prospect of eventually tighter monetary policy in the U.S., and a bout of volatility in the region's currencies. Those worries were on display during an emerging market selloff earlier in the week.

But stocks surged Thursday and early Friday after the U.S. central bank signaled it would be "patient" in raising interest rates. When it does eventually lift rates, such a move that could potentially sap money flows away from riskier markets and into U.S. bonds.

The Dow Jones Industrial Average vaulted to its biggest two-day gain in more than three years Thursday.

Stocks in Korea gained 1.6% while stocks in New Zealand rose 0.4%.

The U.S. dollar rose to Yen119.09 yen, from Yen118.83 late Thursday in New York. Rising interest rates draw investors looking for bigger returns into dollar-denominated bonds, and a stronger dollar is often a boon for Japanese exporters who repatriate dollar earnings from overseas to home.

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