Asian stocks gained on speculation the US Fed would hold back on rate hike this year.
Japanese shares led gainers with 0.7 percent, while MSCI Asia Pacific Index rose 0.1 percent to 139.30 as of 9:00 a.m. in Tokyo.
The S&P 500 closed near a record high after mixed data showed a slowdown in manufacturing and surge in new home sales will undermine hawkish tone of the recent comments from Fed officials.
“While recent U.S. data has been mixed, the base case for the Fed is probably to increase rates in the absence of any compelling reason not to,” Michael McCarthy, chief market strategist in Sydney at CMC Markets, said by phone. “The Fed is aware that there’s a substantial risk that if economic conditions deteriorate, they have very little room to move. Given this, the central bank wants to normalize rates as soon as they can.”
New Zealand’s S&P/NZX 50 Index dropped 0.1 percent. South Korea’s Kospi index rose 0.1 percent and Australia’s S&P/ASX 200 Index added 0.1 percent.
Markets in China and Hong Kong have yet to start trading.
Futures on the China A50 Index were little changed in most recent trading, while those on the Hang Seng Index gained 0.2 percent. Chinese stocks declined in Hong Kong on Tuesday, with the Hang Seng China Enterprises Index plunging 0.2 percent, dragged down by energy producers after oil prices slumped on global glut concerns. The Shanghai Composite Index rose 0.2 percent.
