Asian shares rally after record Wall Street finish

HONG KONG—Asian markets rose on Wednesday and the dollar edged up against the yen after another record finish on Wall Street, but trade was cautious ahead of a Federal Reserve policy decision.

With few trading cues to drive business, investors took a recent batch of weak US data as evidence to suggest the Fed will keep its stimulus program in place until the new year.

Tokyo ended 1.23 percent stronger, advancing 176.37 points to 14,502.35, and Sydney added 0.28 percent, or 15.4 points, to 5,430.9. Seoul closed 0.38 percent higher, adding 7.82 points to 2,059.58.

Shanghai closed 1.48 percent, or 31.60 points, higher at 2,160.46 and Hong Kong jumped 2.00 percent, or 457.48 points, to 23,304.02.

Tokyo stocks were also boosted by figures showing a healthy rise in factory output in September from August, adding to evidence of a pick-up in the world’s No. 2 economy.

The government said factory output rose 1.5 percent last month thanks to a rise in demand for electronics and cars.

The figures come a day after data showed a 3.7 percent jump in household spending last month, and add to a growing feeling that the big-spending policies of Prime Minister Shinzo Abe are gaining traction.

Internationally, markets expect that the Fed—which will wrap up a two-day meeting on Wednesday—will keep its $85 billion a month stimulus in place. But they will pore over its announcement for clues as to when it will start winding down.

The bank had been expected to begin tapering by the end of this year but weak data—including on jobs growth—and this month’s two-week government shutdown has made that highly unlikely.

Most traders expect a reduction in bond-buying to begin in early 2014.

With more cash swirling around financial markets for the next few months, investors took advantage of the cheaper borrowing rates.

On Wall Street Tuesday the Dow climbed 0.72 percent and the S&P 500 rose 0.56 percent, both to all-time highs, while the Nasdaq added 0.31 percent.

However, while the bond-buying stimulus program generally weighs on the dollar, the unit managed to edge up to 98.17 yen on Tuesday in New York.

And in afternoon Tokyo trade, the currency sat at 98.24 yen. The euro fetched $1.3737 and 134.96 yen, from $1.3744 and 134.93 yen in New York trade.

On oil markets, New York’s main contract, West Texas Intermediate for delivery in December, was down 50 cents at $97.70 in afternoon trade. Brent North Sea crude for December shed six cents to $108.95.

Gold rose to $1,350.42 at 1050 GMT compared with $1,346.92 on Tuesday.

In other markets:

— Mumbai rose 0.50 percent, or 104.96 points, to a record close of 21,033.97 points.

India’s largest telecom service provider Bharti Airtel rose 5.23 percent to 359.05 rupees while ICICI Bank rose 2.23 percent to 1,099.45 rupees.

— Bangkok lost 1.70 percent, or 24.74 points, to 1,431.12.

Thai Airways International fell 4.48 percent to 19.20 baht, while telecoms company True Corporation dropped 4.86 percent to 8.80 baht.

— Kuala Lumpur gained 0.10 percent, 1.73 points, to close at 1,817.38.

YTL Power International rose 1.6 percent to 1.91 ringgit, while recently listed Westports Holdings added 1.2 percent to 2.57. SapuraKencana Petroleum fell 0.7 percent to 4.06 ringgit.

— Jakarta closed up 0.27 percent, or 12.11 points, at 4,574.88.

Bank Permata gained 0.71 percent at 1,420 rupiah, while Hero Supermarket fell 2.70 percent to 3,600 rupiah.

— Singapore rose 0.67 percent, or 21.62 points, to close at 3,230.44.

DBS Bank was up 0.84 percent to Sg$16.84 and Singapore Telecom finished 1.86 percent higer at Sg$3.83.

— Taipei climbed 0.52 percent, or 44.08 points, to 8,465.06.

Hon Hai rose 1.35 percent to Tw$75.0 while Taiwan Semiconductor Manufacturing Co. added 0.46 percent to Tw$110.0.

— Wellington rose 0.32 percent, or 15.49 points, to 4,868.08.

Meridian Energy added 1.9 percent to NZ$1.10 a day after its debut and Telecom gained 1.1 percent to close at NZ$2.30.

— Manila climbed 0.82 percent, or 53.75 points, to 6,597.21.