Stocks in Asia rise after policy moves in US, Japan (AP) (17-03-2010)

HONG KONG (AP) -- Asian stock markets pushed higher Wednesday following promised from U.S. and Japanese central banks to continue with their loose monetary policies, buoying hopes for recovery in the world's two largest economies.

Major markets advanced as much as 2 percent while crude oil prices breached the $82 a barrel level as traders increased their bets on riskier investments. The dollar fell against the euro and rose against the yen.

The U.S. Federal Reserve, following a policy meeting Tuesday, reaffirmed it would keep a key interest rate near zero to help foster economic growth. The central bank said businesses are making more investments and employment was stabilizing.

Its assessment wasn't entirely positive, noting companies were still reluctant to hire and the housing market still weak. But it represented an improvement from the Fed's previous outlook, boosting confidence the economy was headed for sustainable growth.

On Wednesday, the Bank of Japan moved to expand easy lending to keep its recovery on track and fight deflation, double the amount available under its short-term credit program to 20 trillion yen ($221 billion) from 10 trillion yen. It also kept its interest rate at a super low 0.1 percent.

Tokyo's Nikkei 225 stock average rose 125.27 points, or 1.2 percent, to 10,846.98.

Elsewhere, Hong Kong's market jumped 360.96, or 1.7 percent, to 21,383.89 and South Korea's Kospi was higher by 34.85, or 2.1 percent, at 1,682.86.

China's main Shanghai index added 1.9 percent, Australia's market rose 1.2 percent and India's Sensex benchmark climbed 0.9 percent.

In currencies, the dollar rose to 90.45 yen from 90.22 yen. The euro rose to $1.3804 from $1.3769.

Oil prices rose in Asia, with benchmark crude for April delivery up 56 cents at $82.26. The contract added $1.90 overnight.

Source: AP