Mumbai, Feb. 18 -- Asian stocks rose in thin holiday trade on Wednesday as Iran-U.S. nuclear talks showed progress, Japan clocked a smaller-than-expected trade deficit in January, and Reserve Bank of New Zealand Governor Anna Breman reinforced the central bank's "accommodative for some time" stance after holding interest rates at the lowest level in 3-1/2 years.

Regional trading volumes were light, with markets in China, Hong Kong and South Korea closed for the Lunar New Year holidays.

The U.S. dollar was broadly higher in Asian trade ahead of the release of key U.S. economic data as well as the minutes from the Fed's January policy meeting.

Gold rose over 1 percent to trade above $4,900 an ounce, after having fallen more than 2 percen...