Asian stock markets post tentative gains after Fed’s caution over US economic recovery

Asian stock markets tentative after Fed statement

BANGKOK — Asian stock markets mostly rose Thursday but gains were tentative after the Federal Reserve struck a note of caution in its latest assessment of the world’s No. 1 economy.

The U.S. central bank’s statement, which accompanied a decision to leave interest rates at a record low, added to unease after weak housing figures suggested economic recovery is uneven.

The Fed said that “financial conditions have become less supportive of economic growth.” The Fed cited what it called “developments abroad” but didn’t mention debt-laden Europe by name.

Economic news in Asia was more upbeat with Japan reporting continued growth in exports for May, driven by demand from within the region.

Oil prices, meanwhile, hovered above $76 a barrel. The dollar was lower against the yen and the euro.

Japan’s benchmark Nikkei 225 stock index edged up 50.76 points, or 0.5 percent, to 9,974.48 after exports rose for a sixth straight month as brisk global demand for cars and high-tech products helped shore up a recovery in the world’s second-largest economy. South Korea’s Kospi gained 0.6 percent to 1,735.61.

Australia’s S&P/ASX 200 was up 0.1 percent at 4,492.50 amid news Australian Prime Minister Kevin Rudd had been dumped as leader by the ruling party and replaced with his deputy.

Elsewhere, Hong Kong’s Hang Seng added less than 0.1 percent to 20,867.02 and the Shanghai Composite Index advanced 0.3 percent to 2,576.39. Stocks in Singapore, Taiwan and India also gained while New Zealand and the Philippines fell.

In New York overnight, the Dow Jones industrial average climbed just 4.92 points, or 0.1 percent, to 10,298.44 Wednesday.

In currencies, the dollar fell to 89.83 yen from 89.93 in New York late Wednesday. The euro climbed to $1.2329 from $1.2316.

Benchmark crude for August delivery up 2 cents at $76.37 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.50 to settle at $76.35 on Wednesday.