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 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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