Most Asian Shares Rise on Yellen's Comments

Most stocks across Asia rallied Wednesday, on indications the U.S. Federal Reserve would wait until later this year before raising interest rates.

Benchmarks from Taiwan to Australia were up a fraction of a percent, after Federal Reserve Chairwoman Janet Yellen, sounding optimistic about the U.S. economy, laid the groundwork for interest-rate increases. Still, Ms. Yellen's comments signaled that the Fed doesn't expect to raise the benchmark rate from near zero at its March or April meetings. Benchmark U.S. Treasury yields fell and U.S. stocks struck fresh highs after the testimony.

The Hang Seng was roughly flat after a preliminary reading showed expansion in Chinese manufacturing activity during February.

HSBC Holdings PLC said Wednesday that its China Manufacturing Purchasing Managers" Index rose to 50.1 in February compared with a final reading of 49.7 in January. A reading below 50 indicates a contraction in manufacturing activity from the previous month, while a reading above indicates expansion. The bank releases its final PMI data on Monday.

Elsewhere in the Asia-Pacific region, stocks in New Zealand rose 1.4% while Taiwan's Taiex and Korea's Kospi gained 0.3% and 0.6%, respectively.

In Japan, the Nikkei Stock Average was up 0.1%, having risen for five consecutive trading days and hitting a series of fresh 15-year highs. "Japan stock investors are likely to show just as much patience with the Fed as the Fed is affording itself, meaning that while profound dollar advances may be held in check for now, they are likely just a matter of time," said BNP Paribas Chief Japan Equity Strategist Shun Maruyama.

The U.S. dollar was last at Yen118.69 against the Japanese yen, compared with Yen118.98 late Tuesday in New York.

Investors were also watching the drawn-out crisis in Greece, where a deal with creditors eased the threat of a bank run, but still left doubts about whether the country could satisfy the terms of its bailout. The deal helped push London's FTSE 100 to an all-time high.

Write to Chao Deng at [e-mail]

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