Asian stocks rose for the first time in five days and in the morning the regional index was about to break the longest period with the negative sign since last January. The US Federal Reserve minutes show a change in attitude towards the risk of inflation caused by the continuation of the stimulus policy.
On the stock front, Fuji Heavy Industries rose 3,4% in Tokyo, driving higher the consumer-related products sector, the fastest-growing industry group within its benchmark, the MSCI Asia Pacific Index. James Hardie Industries jumped 2,9% in Sydney after the building materials maker said it would go ahead with buybacks and increased investment.
MSCI Asia Pacific gained 0,4% to trade at 139.32 as of 9:27am in Tokyo before Chinese and Hong Kong markets opened. The measure fell 1,3% over the past four days on concerns over China's economic growth and after valuations hit a six-week high. Economists expect China's manufacturing index, to be released today, to rise in May.
According to the minutes, Fed officials are monitoring progress towards the goal of reaching full employment in the United States as it considers raising interest rates for the first time since 2006. The minutes They also show that monetary policy makers have agreed that early communication of their exit strategy from stimulus and interest rate policy "would increase the clarity and credibility" of US monetary policy. The Fed concluded it would hold key interest rates near zero for a "substantial period" after the bond program ends.
Japan's Topix gained 0,7 percent in the morning. The Australian S&P/ASX 200 (+0.4%), the South Korean Kospi (+0,3%) and the New Zealand NZX 50 (+0,5%) also performed well.
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