Investing.com - Asian markets mostly gained on Thursday after the U.S. Federal Reserve May meeting minutes indicated an unwinding of its balance sheet likely towards year-end and as investors look ahead to an OPEC gathering widely expected to extend output cuts.
The Nikkei 225 gained 0.42% while South Korea's benchmark Kospi index rose 0.90%. Australia's S&P/ASX edged up 0.28%.
Markets in greater China opened mixed a day after Moody's downgraded the credit rating of the world's second largest economy. Hong Kong's Hang Seng Index rose 0.41% while the Shanghai Composite eased 0.27% after brokerages Citic Securities, Haitong Securities and Guosen Securities were fined by regulators for violating financing rules.
The mainland-listed shares of Citic Securities fell 0.76%, Haitong dipped 0.75% and Guosen tumbled 1.19%. However, Citic and Haitong shares traded in Hong Kong shrugged off the fines, up 0.38% and 0.79% respectively.
Indonesian markets were closed for a holiday.
Overnight, U.S. stocks closed higher for a fifth-straight day Wednesday, buoyed by the minutes of the Federal Reserve’s May meeting, which eased concerns that the Fed’s plan to trim its $4.5 trillion balance would be aggressive.
US stocks rose, following the release of the Fed minutes, which provided more clarity on the process by which the U.S. central bank would shrink its $4.5 trillion balance sheet.
According to minutes released Wednesday from the Federal Open Market Committee meeting during 2-3 May, the central bank will announce cap limits on the total amount of maturing bonds it will allow to roll off each month without reinvesting.
The process will allow the central bank to gradually shrink its balance sheet, and eases concerns of investors, who were unsure whether the central bank would seek to adopt an aggressive approach to reducing its balance sheet.
Interest rate expectations remained unchanged, following the release of the Fed minutes as bullish sentiment concerning the need to increase interest rates “soon” was offset somewhat by a dovish sentiment expressed among Fed members.
Some Fed officials said, signs were needed to show weakness in the first-quarter economic growth was temporary, prior to future rate hikes.
The Dow Jones Industrial Average closed at 21,012.42, up 0.36%. The S&P 500 closed in record territory, up 0.25%, while the Nasdaq Composite closed at 6163.02, up 0.40%.