* Asia up as Wall St rises with Fed in no hurry to end QE
* Dollar on defensive against euro and yen on lower yields
* China's trade data not as strong as expected, reaction
* European shares seen rising slightly
By Shinichi Saoshiro
TOKYO, July 10 Most Asian stock markets rose and
the dollar dipped on Thursday after the Federal Reserve
indicated it was in no rush to begin raising interest rates,
even as it began to plan an exit strategy from an era of loose
MSCI's broadest index of Asia-Pacific shares outside Japan
gained 0.3 percent.
European shares looked set to follow suit, with Germany's
DAX seen rising up to 0.1 percent, though U.S. stock
futures were marginally weaker.
Tokyo's Nikkei bucked the trend and fell 0.3
percent, weighed down by a record drop in machinery orders in
May that cast doubt over the outlook for capital spending and
the strength of its economic recovery.
China's exports in June also missed market forecasts, but
caused limited reaction in regional markets as it reinforced
expectations that Beijing will have to unveil more stimulus
measures to stabilise the economy and meet its 2014 growth
"The trade figures were not so exciting. It's still
unrealistic to count on exports to be an important contributor
to economic growth," said Wang Jun, an economist at the China
Centre for International Economic Exchanges in Beijing.
"The import figure showed some signs of improvement on
domestic demand. Taken together with weak inflation data, we
think domestic demand remains weak. It would be relatively
difficult for China to achieve its annual trade growth target of
7.5 percent in 2014."
Indonesian stocks hit their highest in over a year as the
market welcomed the prospect of reform-minded Jakarta Governor
Joko "Jokowi" Widodo becoming the next president, although his
rival has refused to concede defeat after Wednesday's election.
The Jakarta market was up 1.7 percent after earlier
rising more than 2 percent. The Indonesian rupiah also
gained 0.6 percent to 11,555 to the dollar.
According to minutes from the last Federal Reserve meeting
released on Wednesday, the central bank acknowledged recent
strengthening in the U.S. economy but suggested it was unlikely
to raise policy rates until the second half of 2015.
The absence of a more hawkish message from the Fed eased
worries over interest rate rises and helped Wall Street snap a
two-day slide on Wednesday, while driving U.S. Treasury yields
"The Fed Minutes did not deliver anything new," strategists
at CitiFX wrote in a note to clients. "No one expected a more
dovish message so the hawks are caught offside."
The dollar's index against a basket of six major currencies
dropped to 79.976, its lowest in a week.
The U.S. currency slipped 0.1 percent to 101.58 yen,
weighed down by the lower Treasury yields.
The euro stood little changed at $1.3645 after
gaining more than 0.2 percent against the greenback the previous
The New Zealand dollar hit a three-year high against the
dollar, riding on a tailwind created after ratings agency Fitch
upgraded its outlook on the country's AA rating to positive.
The kiwi touched $0.8839, its highest since August
2011. In contrast, the Australian dollar slipped after a rise in
the jobless rate.
In commodities, copper pulled back from a five-month high
hit on Tuesday as a rally driven by shrinking supply petered
Three-month copper on the London Metal Exchange
traded at $7,126.75 a tonne, flat from the previous session. It
hit a five-month peak of $7,212 on Tuesday.
Crude oil extended losses on faltering U.S. demand for
gasoline and a Libyan oil field resuming output.
U.S. crude fell 0.4 percent to $101.86 per barrel,
having fallen to lowest level in a month.
(Additional reporting by Hideyuki Sano in Tokyo and China
economics team in Beijing; Editing by Kim Coghill)