Asian stocks follow Wall St up as Powell says rates to rise

Asian stock markets have followed Wall Street higher after Federal Reserve chairman Jerome Powell said U.S. interest rates might be raised earlier than planned

BEIJING -- Asian stock markets followed Wall Street higher on Wednesday after Federal Reserve chairman Jerome Powell said monetary policy would return to normal and interest rates might be raised earlier than planned.

Shanghai, Tokyo, Hong Kong and Sydney advanced.

Wall Street's benchmark S&P 500 index rose 0.9% after Powell said policy “in all likelihood” will return to normal as bond purchases and other economic stimulus winds down. Speaking before the Senate Banking Committee, he said ultra-low rates might be raised earlier than planned if necessary to cool inflation that is at a four-decade high.

“Wall Street now has a better understanding on how the Fed will normalize policy,” Edward Moya of Oanda said in a report. “After Powell’s testimony, some investors feel they got the all-clear signal to buy the dip.”