An investor walks past an electronic board displaying live market data at a stockbroker’s office in central Bangkok, Thailand, August 19, 2015. REUTERS/Chaiwat Subprasom

HONG KONG, May 5 (Reuters) – Asian stocks followed Wall Street’s gains on Thursday after the U.S. central bank hiked interest rates by 50 basis points, but sounded less hawkish than some would expect. feared, boosting investor sentiment but lowering yields and the dollar. .

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.52%, although trading was weak with the Japanese and Korean markets closed for the holidays.

Crude prices, meanwhile, soared as the European Union clarified some of the details of its plan to ban the use of Russian oil, heightening supply concerns.

Early moves in Asia followed an overnight US rally where the Dow Jones Industrial Average (.DJI) rose 2.81%, the S&P 500 (.SPX) gained 2.99% and the Nasdaq (. IXIC) advanced 3.19%.

“Markets seemed to breathe a sigh of relief after the Fed’s 50bp hike and Powell’s comment that a 75bp is not something the (Fed policy committee) is currently considering,” ANZ analysts said.

In Asia, the focus is on markets in mainland China, which are returning from a three-day pause on Thursday, with investors watching closely to see if the tech-led gains made just before the pause hold up.

The Chinese names rallied after Beijing signaled an easing of its crackdown on the once freewheeling tech sector and pledged policy support for the world’s second-largest economy. Read more

This week, Hong Kong stocks fell slightly while the offshore Chinese yuan was volatile but still stronger than it was last week.

The Federal Reserve raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years. Fed Chairman Jerome Powell said policymakers were ready to approve rate hikes of half a percentage point at upcoming policy meetings in June and July. Read more

However, Powell also said the Fed was “not actively considering” a 75 basis point rate hike, tempering some market expectations for an aggressive tightening path.

This sent the dollar lower, where it remained in early Asia.

The dollar index, which measures the greenback against six peers, was at 102.56, after being as firm as 103.63 on Wednesday.

US Treasuries were not trading due to the Japanese holiday, but also fell overnight. The benchmark 10-year yield was last seen at 2.9402%, down from just over 3%.

Oil extended its gains on Thursday after the European Union, the world’s largest trading bloc, announced detailed plans to phase out Russian oil imports

U.S. crude futures gained 0.5% to $108.36 a barrel and Brent rose 0.6% to $110.8. Both indexes rose more than $5 a barrel on Wednesday.

Editing by Sam Holmes

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