Asia stocks gain as weak retail sales shift Fed thinking

(AP Photo/Jin Lee, File). FILE — In this Monday, Aug. 8, 2011 file photo, a pedestrian walks past the New York Stock Exchange in New York. Financial stocks are leading an early gain in U.S. trading Thursday, March 12, 2015, a day after a number of bank.

By YOUKYUNG LEE

AP Business Writer

SEOUL, South Korea (AP) — Asian stock markets mostly rose Friday after weak U.S. retail sales alleviated jitters about the Federal Reserves timetable for raising interest rates.

KEEPING SCORE: Japans Nikkei 225 rose 1.5 percent to 19,275.99 and South Koreas Kospi gained 1 percent to 1,989.30. Hong Kongs Hang Seng added 0.3 percent to 23,851.06 and Chinas Shanghai Composite was up 0.4 percent to 3,363.55. But Australias S&P/ASX 200 fell 0.6 percent to 5,813.80. Stocks in Southeast Asia were lower.

RETAIL SALES: U.S. retail sales fell 0.6 percent last month after a 0.8 percent decline in January, the Commerce Department said Thursday. Despite a big drop in gas prices last year, auto purchases dropped by the most in more than a year and Americans spent less at restaurants and home improvement stores. Many investors think its only a matter of time before consumers start to spend again, particularly if gas prices stay low and wages start to rise.

FED MOVE: Analysts said the weak U.S. retail sales undermined arguments that the Federal Reserve will bring forward the timing of its first rate hike since the global financial crisis. Global stock markets have dropped in the past week on expectations that the Fed will raise rates soon after unexpectedly strong U.S. employment figures. Fed policymakers are meeting next week. But some analysts dont think the Fed will put great stock in the retail data and expect it to drop the word patient in reference to its timetable for raising interest rates.

THE QUOTE: Last nights U.S. retail sales data has shifted thinking on the timing of U.S. rate hikes, adding an element of risk to the early rate hike scenario, Ric Spooner, chief market analyst at CMC Markets, said in a commentary.

WALL STREET: A break in the dollars sharp rally helped push the stock market to its best day in five weeks. The Standard & Poors 500 index climbed 25.71 points, or 1.3 percent, to 2,065.95 on Thursday. The Dow Jones industrial gained 259.83 points, or 1.5 percent, to 17,895.22. The Nasdaq composite climbed 43.55 points, or 0.9 percent, to 4,893.29.

ENERGY: Benchmark U.S. crude was up 8 cents to $47.14 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.12 to settle at $47.05 on Thursday. Brent crude, a benchmark for international oils used, was up 12 cents to $57.40 in London.

CURRENCIES: The U.S. dollar made gains against other major currencies Friday. The euro slipped to $1.0603 from $1.0628 the previous session. The dollar rose to 121.52 yen from 121.29 yen.