Asian shares follow Wall St higher

Hong Kong: Asian markets were mostly higher on Wednesday ahead of expected guidance by the Federal Reserve on the timing of its cuts to interest rates. Oil prices and US futures fell. Japan’s markets were closed for a holiday. On Tuesday, the Bank of Japan hiked its benchmark interest rate for the first time in 17 years, raising the rate to a range of zero to 0.1 per cent from minus 0.1 per cent.

The US dollar rose against the Japanese yen after the BOJ decision suggested that a wide gap between interest rates in the United States and in Japan will persist for the foreseeable future. The dollar rose to 151.43 yen from 150.87 yen, trading at its highest level in four months. The Hang Seng in Hong Kong edged 0.2 per cent higher to 16,559.77, while the Shanghai Composite index was up 0.5 per cent at 3,076.67. China left its benchmark lending rates unchanged on Wednesday, as expected.

While the economy is showing signs of improvement, the property market remains precarious. Elsewhere, Australia’s S&P/ASX 200 added 0.3 per cent to 7,725.40, while the Kospi in South Korea advanced 1.1 per cent to 2,685.87, Taiwan’s Taiex gained 0.1 per cent.