Asian shares rise after Fed says economic aid will wind down

TOKYO (AP) — Asian shares rose Thursday, boosted by the U.S. Federal Reserve's announcement on winding down the extraordinary aid for the economy it has been providing since the early days of the pandemic.

Japan's benchmark Nikkei 225 gained 0.7% in afternoon trading to 29,729.44. South Korea's Kospi added 0.2% to 2,982.96. Australia's S&P/ASX 200 edged up 0.5% to 7,428.00. Hong Kong's Hang Seng added 0.1% to 25,058.95, while the Shanghai Composite rose 0.7% to 3,521.67.

Analysts said the signs from the Fed continued to be dovish, as well as hawkish, reassuring global markets that interest rates weren't going to be raised for some time.

“We got a ‘dowkish’ Fed move,” was the way RaboResearch characterized the message.

But long-term worries about Asian economies remain because of concerns there may be a sixth wave of coronavirus infections, despite growing signs of a return to normal economic activity and a freer flow of people traveling in some nations. Eyes also remain on earnings reports expected from an array of companies in Asia, including Japanese automakers and technology companies.

On Wall Street, the S&P 500 rose 0.6% and the Dow Jones Industrial Average added 0.3%, both marking their fifth straight gain. The Nasdaq climbed 1%, extending its winning streak to an eighth day. All three indexes set their latest record closing highs.

In a statement, the Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month. If that pace is maintained, the Fed could be done winding down its bond purchases as early as June. At that point, the Fed could decide to begin raising its key short-term interest rate, which affects many consumer and business loans.

The central bank reserved the right to change the rate...