Asia mimics wall street rally before FOMC; Kiwi drops after GDP data

Asian stocks swung higher after US markets closed with solid gains on Wednesday. Investors now await the much-anticipated Federal Open Market Committee (FOMC) statement, which may or may not see US interest rates increased for the first time in nearly a decade.

Data released on Wednesday supported the 'wait' camp, with the US CPI sliding 0.1% month-on-month in August, and core inflation rising only 0.1%.

Japan's benchmark Nikkei 225 index surged 1.32% to 18,411.49 points within the first hour of trade, while Tokyo's broader Topix gauge jumped 1.02% to 1,487.56 points.

Hong Kong's benchmark Hang Seng index advanced 0.70% to 22,119.88 points shortly after the opening bell, but mainland China's benchmark Shanghai Composite fell 0.59% to 3,133.78 points at the same time.

Korea's benchmark Kospi index jumped 0.59% to 1,987.15 points this morning in Seoul.

The benchmark Australian S&P/ASX 200 index rallied 1.64% to 5,182.40 points in Sydney, with energy stocks racing ahead and banks making solid gains.

New Zealand's benchmark S&P/NZX 50 index rose 0.62% to 5,703.38 points this afternoon in Wellington. The New Zealand economy expanded 0.4% in the June quarter, according to Statistics New Zealand data released on Thursday, missing the market forecast of 0.6% growth, which was also the Reserve Bank of New Zealand's (RBNZ) estimate. The New Zealand dollar fell 0.30% to $0.6345 on Thursday afternoon in Wellington, from $0.6363 at the close of trade in New York on Wednesday, hitting an intraday low of $0.6337 after the GDP figures were released.