HONG KONG ? (UPDATE) A rise on Wall Street led Asian stock markets higher Thursday after the US Federal Reserve left interest rates near zero as expected, but concerns over tighter credit in China remained.

Investors' spirits were lifted after the Fed gave no sign that it would tighten its stimulative monetary policy any time soon, ahead of President Barack Obama's State of the Union address.

Traders also awaited a report due Friday that was expected to show the US economy grew at a robust pace in the fourth quarter.

US stocks rose 0.41 percent after the Fed said it expected to maintain very low interest rates "for an extended period" to support the economic recovery.

"The unchanged view on interest rates was in line with the market's expectations, but the Fed's better economic assessment is lifting sentiment," Tachibana Securities operating officer Kenichi Hirano told Dow Jones Newswires.

Tokyo rose 1.31 percent in morning trade, rebounding from a five-week low on the Wall Street rally and a weaker yen, which is good for exports.

However shares in automaker Toyota fell 1.75 percent, having tumbled 4.26 percent Wednesday after the company expanded its massive recall in the United States by more than a million vehicles to replace floor mats that could trap accelerator pedals.

Hong Kong powered 1.32 percent ahead after six straight days of decline, while Singapore was 1.41 percent higher.

However, Chinese shares fell 0.55 percent with financial companies leading the losses amid lingering concerns over tightening credit conditions, dealers said.

The possibility that loans may be restricted in China, a key export destination for many of the region's economies, has spooked investors.

Reports Tuesday that authorities had ordered several banks to stop issuing new loans this month amid growing fears that the extra money is helping drive soaring inflation have also weighed on sentiment.

Australian shares were flat in the session to noon after falls in commodity prices overnight, amid investor caution over Chinese monetary policy and ahead of Friday's US growth figures.

Gold opened lower in Hong Kong Hong Kong at $1,087.00-1,088.00 an ounce, down from Wednesday's close of $1,093.50-1,094.50.

Oil was higher. New York's main futures contract, light sweet crude for delivery in March, climbed 11 cents to $73.78 a barrel.

London's Brent North Sea crude for March delivery was up 14 cents to $72.38.

Overnight the euro fetched $1.4019 against $1.4073 late Tuesday. The dollar was at 89.94 yen, down from 89.62 yen on Tuesday.