ASIA MARKETS: Asian Shares Gain After Fed Minutes

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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