TOKYO — Asian stock markets wavered Friday on renewed expectations for a Fed rate hike this year while the New Zealand dollar jumped on prospects of increased dairy exports after China abolished its one-child policy. Japan's Nikkei 225 was up 0.8% to 19,083.10 after the Bank of Japan left its super-easy monetary policy unchanged. Hong Kong's Hang Seng was down 0.5% at 22,706.48 and South Korea's Kospi fell 0.2% to 2,029.47. China's Shanghai Composite was little changed at 3,387.73. Australia's S&P/ASX 200 fell 0.5% to 5,239.40. Stock benchmarks fell in Taiwan, Singapore the Philippines and Indonesia, but rose in Thailand. The New Zealand dollar surged in the wake of China's announcement it would allow all couples to have two children, abolishing its unpopular one-child policy. New Zealand is a major dairy exporter and its milk powder and formula industry is likely to benefit from a baby boomlet in China. The kiwi dollar jumped to $0.6755 from $0.6699 the day before. Shares of baby-related stocks also posted big gains. Stroller maker Goodbaby International was up 5.1% in Hong Kong and Beingmate Baby & Child Food vaulted 10% in Shenzhen. Investors increasingly believe the Federal Reserve will raise its benchmark interest rate from a record low in December. Data on Thursday showed the US economy cooled during the third quarter but that was largely due to transitory changes in inventory levels and the underlying picture is in line with the Fed's view of a moderately strong economy. Super low interest rates have been a boon for stock markets for several years. The third quarter growth figure "is unlikely to be an excuse for the Fed to hold off a rate hike," said Bernard Aw, market strategist at IG in Singapore said in a commentary. "As long as the jobs data resumes a strong upward trajectory, shrugging off the soft patch in August and September, alongside improvement in the inflation numbers, the case for a December liftoff remains alive."

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