World Stocks Advance After Fed Decision

SEOUL, South Korea (AP) -- World stocks advanced Tuesday after a Federal Reserve board member said there is no rush to raise interest rates, reassuring investors who were worried that a rate hike could pull share prices lower.

KEEPING SCORE: Germany's DAX gained 0.2 percent to 10,448.79 while the CAC 40 of France added 0.1 percent to 4,445.97. Britain's FTSE 100 edged 0.1 percent lower to 6,692.22. Dow futures were off 0.7 percent and S&P futures were also down 0.7 percent, auguring a weak start on Wall Street after Monday's rally.

U.S. RATE WATCH: On Tuesday, Lael Brainard, an influential Fed policymaker, suggested in a speech that the risk that higher rates might derail growth was greater than the risk that lower rates might ignite inflation. That was seen as a sign the Fed will refrain from raising rates at a meeting next week. Low rates have fueled a steady rise in stock prices as investors put their money in high-risks stocks instead of low-interest savings accounts or bonds.

ANALYST'S COMMENT: "She highlighted global challenges such as muted inflation and global uncertainties and particular concerns for the U.S. economy," said Bernard Aw, a market strategist at IG in Singapore. "It's safe to assume that investors believe that September is not going to be the month where the Fed pulls the trigger."

ASIA'S DAY: Japan's Nikkei 225 gained 0.3 percent to 16,729.04 and South Korea's Kospi rose 0.4 percent to 1,999.36 as Samsung Electronics, in the midst of a recall of its Galaxy Note 7 smartphones, gained 4.2 percent, recovering about 60 percent of Monday's 7 percent loss. Hong Kong's Hang Seng index lost 0.3 percent to 23,215.76, while Australia's S&P/ASX 200 fell 0.2 percent to 5,207.80. The Shanghai Composite index inched back into positive territory, gaining 0.1 percent to 3,023.51. Markets in Southeast Asia were mostly lower.

OIL: Benchmark U.S. crude fell $1.00 cents to $45.29 per barrel in New York. The contract added 41 cents on Monday. Brent crude, the benchmark for international oil trading, lost 88 cents to $47.44 a barrel in London.

CURRENCIES: The dollar fell to 101.82 yen from 101.89 yen while the euro slipped to $1.1234 from $1.1238.

(KA)