Asian shares mostly rose on Thursday, tracking gains on Wall Street after the Federal Reserve signaled it may keep interest rates steady. The Fed said the economy still looks healthy enough to maintain current rates. Hong Kong’s Hang Seng index fell 1.3% to 24,454.47, while the Shanghai Composite Index edged down 0.1% to 3,424.16.
South Korea’s Kospi climbed 0.5% to 2,641.49. Australia’s S&P/ASX 200 added 1.2% to 7,925.40. Taiwan’s Taiex jumped 1.8%.
Thailand’s SET inched up 0.2%. On Wednesday, the S&P 500 rose 1.1% to 5,675.29. The Dow Jones Industrial Average gained 0.9% to 41,964.63.
The Nasdaq composite increased 1.4% to 17,750.79. Easing bond yields also boosted stocks.
asian markets mixed after fed signals
Fed Chair Jerome Powell noted rising consumer and business pessimism in recent surveys. However, he pointed to low unemployment and other data showing the economy remains strong. “We think our policy is in a good place to react to what comes,” Powell said.
The Fed has held rates steady this year after cutting them sharply in 2022. The 10-year Treasury yield dropped to 4.24% from 4.31% just before the Fed’s announcement. Lower rates can help boost the economy but also push up inflation.
The Fed still forecasts two rate cuts by year-end but sees weaker growth and higher uncertainty. In other trading, U.S. crude oil rose 41 cents to $67.32 per barrel. Brent crude gained 43 cents to $71.21 per barrel.
The U.S. dollar slipped to 148.32 Japanese yen from 148.69 yen. The euro edged up to $1.0909 from $1.0905.
Image Credits: Photo by Aditya Vyas on Unsplash
