Asian stocks rise after Fed signals softer rate hikes

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Atlanta Federal Reserve president says he favours ‘slow and steady’ quarter-point rate increases

Hong Kong — Asian shares rose on Friday after Wall Street reversed losses on signals of a measured policy tightening approach from the US Federal Reserve as well as on prospects of a solid economic recovery in China.

Markets are also watching out for China’s annual meeting of parliament, which kicks off on Sunday, to set economic targets and elect new top economic officials. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5% in early trade, on track for its first weekly rise in five. The index is up 1.6% so far this month. US stock futures, the S&P 500 e-minis, were down 0.07% at 3,982, but the major indices ended up in regular trading overnight.

US stocks rose on Thursday, reversing earlier losses, as Treasury yields pulled back from earlier highs, after the rates comments from Bostic. In currencies, the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was down at 104.86. The index is now up more than 1% for the year, but still down from a September high of around $114.

 

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