Asian Shares Rise as Fed Shows Patience

By Chao Deng 

        Stocks in Japan and Australia jumped early Thursday on signals from the U.S. Federal Reserve that it is not in a hurry to raise interest rates, encouraging investor risk appetite.
        The Nikkei Stock Average surged 2.3% while the S&P ASX 200 gained 1.5%, after U.S. stocks rallied to the Fed's pledge to keep interest rates low for a "considerable time."
        The indication by the central bank was a relief for the region, after an emerging market selloff earlier in the week had investors fleeing the rupee, rupiah, and stocks and bonds in pockets of southeast Asia.
        A longer timeline for rate hikes implies that stocks will continue to be more appealing to investors compared with the low returns on bonds.
        Still, the U.S. dollar rose as Fed Chairwoman Janet Yellen tempered the message, saying "no meeting is off the table" as an option for when to raise rates. The greenback was at 118.80 yen, from 117.67 yen before the Fed meeting's conclusion on Wednesday. A stronger greenback is often beneficial for Japanese exporters earning in dollars abroad.
        Elsewhere, Korea's Kospi was up 0.4% and Singapore's Strait Times was up 0.3%. Taiwan's Taiex was 0.8% higher.
        Write to Chao Deng at Chao.Deng@wsj.com
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        (END) Dow Jones Newswires

        December 17, 2014 20:39 ET (01:39 GMT)

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