Asian markets advanced on Wednesday, following gains in U.S. equities overnight after Federal Reserve chair Janet Yellen told markets that the Fed would move ‘cautiously’ in a scheduled speech to the Economic Club of New York on Tuesday.

Only Japan's Nikkei 225 closed down 224.57 points, or 1.31 percent, at 16,878.96. The Korean Kospi ended up 7.23 points, or 0.36 percent, at 2,002.14 and Hong Kong's Hang Seng index was higher by 1.61 percent in the afternoon.

Chinese markets also rose, with the Shanghai composite adding 2.42 percent and the Shenzhen composite up 2.95 percent.

Australia's ASX 200 was off earlier highs, retracing gains of more than 1 percent to close up 5.78 points, or 0.12 percent, at 5,010.30. The Australian dollar, however, strengthened after Yellen's remarks, fetching $0.7638, compared with levels around $0.7530 on Tuesday prior to the speech.

Oil prices were higher in Asian hours, with U.S. crude futures up 0.68 percent at $38.54 as of 2:31 p.m. HK/SIN time, after settling down $1.11 overnight. Global benchmark Brent was also up 0.54 percent at $39.35 a barrel, after settling down $1.13 in U.S. hours.

Greater Gradualism

The Fed chair suggested that the best policy at the moment, with a funds rate at zero and increased uncertainty, is ‘greater gradualism.’ She posited, however, that the Fed can introduce a rate hike at any time if the economy grows faster.

According to Mark Matthews, head of research at private bank Julius Baer, "Janet Yellen doubled down on dovishness, in a speech full of risks to the economic outlook. She totally contradicted the four Fed presidents who spoke last week, and any chance of the April rate hike suggested by them is over."