MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, taking its gains to 6 percent in two weeks, as investors judged the Fed's cautious stance as well-suited to equities.
"Yellen's comments yesterday downplayed the impact of the jobs data last week and gave a cautious sense of optimism on the outlook for the U.S. economy," said Fan Cheuk Wan, head of investment strategy, Asia at HSBC Private Bank.
Tokyo stocks ended higher Tuesday as U.S. stocks were lifted after Federal Reserve chair Janet Yellen signaled the U.S. central bank may raise interest rates gradually later this year, while a weaker yen also improved sentiment.
The 225-issue Nikkei Stock Average ended up 95.42 points, or 0.58 percent, from Monday at 16,675.45. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 8.34 points, or 0.63 percent, higher at 1,340.77.
China stocks were roughly flat on Tuesday, bucking gains in Hong Kong and other Asian markets which were supported by diminishing expectations of near-term U.S. interest rate hikes.
The blue-chip CSI300 index fell 0.1 percent, to 3,177.05, while the Shanghai Composite Index gained 0.1 percent, to 2,936.04 points.
Hong Kong shares rose over 1 percent on Tuesday after U.S. Federal Reserve Chair Janet Yellen gave a largely upbeat assessment on the U.S. economic outlook, but gave few hints on when it will increase interest rates.
To some investors, the absence of a time frame in Yellen's remarks on Monday suggested that the Fed may now be in no rush to raise rates after a surprisingly weak job report last week.
The Hang Seng index rose 1.4 percent to 21,328.24 points, while the China Enterprises Index gained 1.6 percent to 9,004.30 points.
Reference: Reuters, Nikkei Asian Review
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