Fed Comments Ease Rate Hike Fears, Lift Asian Stocks

Asian stock markets rallied on Friday as traders pared back their expectations for an interest rate hike by the Federal Reserve, following comments from top officials that tempered fears of a September increase.

The Dow and Nasdaq indexes on Wall Street both rose over one percent, with Tokyo's Nikkei 225 index leading the gains in Asia, up 1.3 percent at 65,020.94.

Comments from New York Fed governor Christopher Waller and Federal Reserve official John Williams provided relief to markets, which have been shaken by a Middle East crisis that sent crude oil prices surging around 10 percent this week.

'My decision on the appropriate stance of policy will be heavily influenced by what we learn about August inflation,' Waller said. 'If there is continued progress toward our two percent goal, then I am willing to support holding the policy rate at its current level.'

The comments came as investors prepared for the release of US non-farm payrolls figures later Friday and the consumer price index next week.