Asian Stocks End Higher; Nikkei Gains 2.2%

By Stephen Wright

BANGKOK -- Asian stocks rose Thursday after the U.S. Federal Reserve said the world's largest economy is shrinking at a slower pace and scotched fears of an inflation threat, underpinning investor hopes for recovery.

Benchmarks in Japan and Hong Kong gained 2% or more in the wake of the U.S. central bank's much anticipated policy statement but trading volume was thin, reflecting doubts that the massive rally in global markets since March can be sustained.

Investors also took heart from figures showing that new orders for durable goods like household appliances rose 1.8% for the second straight month in May -- three times more than anticipated -- with strength seen across all major industries. ...