Asian shares
scaled two-year highs on Thursday while the dollar and U.S. bond yields
slipped after the U.S. Federal Reserve signaled a cautious approach to
future rate hikes and the reduction of its $4.5 trillion of bond
holdings.
European
shares are also expected to gain, with spread-betters looking to higher
openings of 0.3 percent in Germany's DAX .GDAX and France's CAC .FCHI and 0.2 percent in Britain's FTSE .FTSE.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 1.0 percent, hitting its highest level since May 2015, and bringing its gains so far this year to about 17 percent.
The gains were led by South Korean shares .KS11, which rose 1.0 percent to record highs. Hong Kong's Hang Seng .HSI gained 0.8 percent to its highest level since July 2015 while Taiwanese shares hit 17-year highs .TWII. In Japan, Nikkei .N225 gained 0.5 percent.
Minutes from the Fed's last policy meeting showed policymakers agreed they should hold off on raising interest rates until it was clear a recent U.S. economic slowdown was temporary, though most said a hike was coming soon.
The minutes also showed that policymakers favored a gradual reduction in its massive balance sheet.
Fed staff proposed that the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially setting it at a low level and raising it every three months.
Following the minutes, the 10-year U.S. Treasuries yield US10YT=RR fell to 2.255 percent from Wednesday's high of 2.297 percent.
Fed funds rate futures are pricing in about a 75 percent chance that the Fed will raise rates next month, moving down from more than 80 percent earlier this week .
In the currency market, the euro EUR= traded up 0.1 percent in Asia at $1.1225, having bounced back from Wednesday's low of $1.1168 and coming within sight of $1.1268, its 6 1/2-month high set on Tuesday.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 1.0 percent, hitting its highest level since May 2015, and bringing its gains so far this year to about 17 percent.
The gains were led by South Korean shares .KS11, which rose 1.0 percent to record highs. Hong Kong's Hang Seng .HSI gained 0.8 percent to its highest level since July 2015 while Taiwanese shares hit 17-year highs .TWII. In Japan, Nikkei .N225 gained 0.5 percent.
Minutes from the Fed's last policy meeting showed policymakers agreed they should hold off on raising interest rates until it was clear a recent U.S. economic slowdown was temporary, though most said a hike was coming soon.
The minutes also showed that policymakers favored a gradual reduction in its massive balance sheet.
Fed staff proposed that the central bank set a cap on the amount of bonds that would be allowed to run off each month, initially setting it at a low level and raising it every three months.
Following the minutes, the 10-year U.S. Treasuries yield US10YT=RR fell to 2.255 percent from Wednesday's high of 2.297 percent.
Fed funds rate futures are pricing in about a 75 percent chance that the Fed will raise rates next month, moving down from more than 80 percent earlier this week .
In the currency market, the euro EUR= traded up 0.1 percent in Asia at $1.1225, having bounced back from Wednesday's low of $1.1168 and coming within sight of $1.1268, its 6 1/2-month high set on Tuesday.
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