Asian stock markets traded mostly higher on Thursday, following a strong session on Wall Street after the US Federal Reserve reaffirmed its expectation of two rate cuts later this year.
The Fed’s decision to leave interest rates unchanged, coupled with a statement acknowledging increased uncertainty in the economic outlook, bolstered investor sentiment.
However, concerns over US tariffs and China’s unchanged lending rates weighed on some markets.
The Japanese market remained closed for the Vernal Equinox holiday after ending slightly lower on Wednesday.
Hong Kong and China stocks slip
Hong Kong stocks pulled back from a three-year high after China’s central bank left its key lending rates unchanged for the fifth straight month.
The Hang Seng Index dropped 0.99% to 24,525.67, snapping a four-day rally of 5.6%.
The Hang Seng Tech Index slid nearly 2%, while the CSI 300 Index and Shanghai Composite Index declined 0.6% and 0.4%, respectively.
Investor disappointment over China’s decision to hold the one-year and five-year loan prime rates (LPRs) at 3.1% and 3.6%, respectively, weighed on sentiment. The move dashed hopes for a rate cut to support stocks and economic growth.
Among notable Hong Kong stocks, Ping An Insurance Group tumbled 4.1% after missing earnings estimates, while Tencent Holdings slid 3.5% despite reporting full-year revenue in line with expectations.
CK Infrastructure Holdings lost 4.1%, with concerns mounting over its plans to sell port assets.
Other Asian markets
In Australia, stocks rebounded strongly, reversing the previous session’s losses.
The benchmark S&P/ASX 200 surged 1.11% to 7,915.20, crossing the 7,900 level, supported by gains in gold miners, financials, and technology stocks.
Seoul shares opened higher on Thursday, following gains on Wall Street.
At the time of writing, the Kospi was up 0.52% to 2,642.67.
Wall Street on Wednesday
Stocks rebounded sharply on Wednesday, recovering much of the losses from the previous session.
Despite pulling back from their highs before the close, major indexes remained firmly in the green.
The Nasdaq gained 246.67 points, or 1.4%, to 17,750.79, while the S&P 500 rose 60.63 points, or 1.1%, to 5,675.29.
The Dow advanced 383.32 points, or 0.9%, to 41,964.63.
Markets saw early gains that extended following the Federal Reserve’s monetary policy announcement.
As expected, the Fed kept interest rates unchanged but signaled that rate cuts are still likely later this year.
The central bank maintained the federal funds rate target at 4.25% to 4.50%, emphasizing its commitment to supporting maximum employment and a long-term inflation goal of 2%.
In its previous meeting in late January, the Fed also left rates unchanged after cutting them by a total of 100 basis points over the prior three meetings.
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