Asian stocks hit highest level since December 2007

MSCI's broadest index of Asia-Pacific shares outside Japan rose to highest level this Thursday, tracking the record run on the Wall Street and on the back of less hawkish Fed minutes.

The MSCI index gained 0.2 percent. Japan's Nikkei index rose to 20,980.92; the highest level since December 1996. South Korea's Kospi added 0.2% to hit new record highs. Hang Seng hit a decade high before falling into the red.

Asia took cues from Wall Street, where the major indexes rose to yet another set of record closing highs overnight on reports that a market-friendly candidate is likely to be the next Fed Chairman. However, WSJ report released earlier today showed Warsh could be the next Fed Chairman. Warsh is viewed as relatively hawkish on monetary policy and has criticized the central bank's easy money policies.

Fed minutes: Future rate hikes dependent on inflation data

The Fed minutes showed policymakers in a prolonged debate about the prospects of a pickup in inflation and the path of future interest rate rises if inflation did not rise. The less hawkish tone is likely to calm fears that the central bank is hell bent on normalizing the policy irrespective of the quality of the economic data.

The record rally in the stocks across the globe also indicates the investors are not worried about the geopolitical tensions in the Korean Peninsula or in Spain and UK.