Most Asia Stocks Fall After Fed Minutes; Oil Gains

Most Asian equities fell, following declines in U.S. stocks after minutes from the Federal Reserve’s latest meeting showed officials confident they can raise rates gradually. Oil rallied.

Stocks in Hong Kong led declines in Asia after the S&P 500 index slipped from an all-time high. Japan’s Topix pared earlier losses, while the Bloomberg Dollar Spot Index strengthened to recover some of Wednesday’s retreat. Treasuries maintained the previous session’s advance. Crude rebounded ahead of government data on stockpiles, while metals declined for a third day.

Fed policy makers expressed confidence they can take their time raising rates as there’s little threat inflation will suddenly accelerate, according to the minutes. Officials wrestled with uncertainty on issues ranging from the Trump administration’s fiscal stimulus plans to the headwinds a rising dollar may pose. The odds for an increase in March retreated to 36 percent. Allianz SE chief economic adviser Mohamed El-Erian said that seems “too low.”

Here are the main moves in markets:

Currencies

· The Bloomberg Dollar Spot Index rose 0.1 percent as of 3:29 p.m. in Tokyo, after falling 0.2 percent on Wednesday. The yen climbed less than 0.1 percent to 113.25 per dollar, extending a 0.3 percent gain from the previous day.

· The Korean won rose 0.4 percent, climbing for a third day. The central bank kept its policy interest rate unchanged for an eighth month as improvements in exports and inflation offset concerns over a political scandal that’s hurt domestic confidence.

· The euro was little changed at $1.0556 after gaining 0.2 percent on Wednesday.

Stocks

· The MSCI Asia Pacific Index was little changed, with slightly more stocks declining than advancing.

· Japan’s Topix declined less than 0.1 percent, following three days of gains that took it to the highest since December 2015. The index pared an earlier loss of as much as 0.6 percent.

· Australia’s S&P/ASX 200 Index slid 0.4 percent, while New Zealand’s S&P/NZX 50 Index advanced 0.4 percent. South Korea’s Kospi added 0.1 percent.

· The Hang Seng China Enterprises Index dropped 0.3 percent, after a 1.2 percent jump on Wednesday, while the Shanghai Composite Index fell 0.7 percent.

· Futures on the S&P 500 were flat after the benchmark index lost 0.1 percent. The Stoxx Europe 600 Index gave up earlier gains to end little changed.

Bonds

· The yield on 10-year Treasuries was little changed at 2.41 percent, after sliding two basis points on Wednesday.

· Australian 10-year yields dropped five basis points to 2.79 percent.

Commodities

· Oil climbed 0.8 percent to $54.03 a barrel, erasing a 0.9 percent drop in the previous session. An industry report showed U.S. crude stockpiles fell, in a sign that government data due Thursday may show the first contraction this year.

· Copper fell 1.1 percent in London, dropping for a third day, while aluminum slipped amid increasing stockpiles in China.

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