Asian equity markets posted a mixed performance on Thursday after the Federal Reserve announced a 0.25‑percentage‑point increase to its benchmark rate, the first hike in three years. The move lifted the Fed’s target range to 3.75%‑4.00% as policymakers continue to battle inflation that remains above the central bank’s 2% goal.
Key market moves
Japan’s Nikkei 225 edged higher, gaining 0.2% to close at 64,067.53. South Korea’s Kospi outperformed with a 0.9% rise, ending the session at 6,778.49. In contrast, Hong Kong’s Hang Seng slipped 0.7% to 24,533.46, and China’s Shanghai Composite fell 0.4% to 3,877.46.
Australia’s S&P/ASX 200 added 0.3% to finish at 8,718.20, while Taiwan’s Taiex posted a solid 1.3% jump. India’s Sensex also moved higher, edging up 0.3%.
U.S. market backdrop
On Wall Street, the S&P 500 dropped 0.5% and the Dow Jones Industrial Average slipped 1.2% after the Fed’s decision. The technology‑heavy Nasdaq composite was largely unchanged. Despite the equity pullback, U.S. futures were higher heading into the Asian session.
Morningstar’s Asia equity‑research director Lorraine Tan noted that the market reaction was “pretty much expected since the rate rise was also in line with market expectation.” She added that ongoing geopolitical tension surrounding the Iran conflict could keep inflationary pressure elevated.
Bond and currency markets
Following the Fed announcement, the two‑year U.S. Treasury yield rose to 4.72%, up from roughly 4.67% the previous day. The 10‑year Treasury yield held steady around the 5.00% mark, reflecting continued investor concern over higher debt costs.
The U.S. dollar weakened slightly, trading at 156.04 Japanese yen versus 156.26 yen the day before. The euro edged higher, quoted at $1.1467, up from $1.1465.
Energy outlook
Oil prices inched up as supply concerns persisted. Limited flows through the Strait of Hormuz and Saudi Arabia’s temporary shutdown of a key pipeline added pressure on global oil supplies. Brent crude, the international benchmark, rose 0.1% to $105.89 per barrel.
Outlook
The Fed’s rate hike signals a commitment to taming inflation, even as higher borrowing costs pose challenges for businesses and consumers. Market participants will watch upcoming economic data for clues on whether further tightening is needed. For Asian investors, the mixed equity response underscores the importance of regional diversification amid shifting global monetary policy.
AP Business Writer Stan Choe contributed to this report.
Original reporting: KTBS 3 (Shreveport) — read the source article.
