Asian stock markets exhibited a positive trend in response to the latest decision by the Federal Reserve (Fed) to keep interest rates unchanged, marking the second consecutive meeting without a rate increase.
The South Korean Composite (KOSPI) saw notable gains, closing at 2,343.12 points, marking an increase of 41.56 points or +1.81%. The market responded positively to the Fed’s decision not to raise interest rates, signaling investor confidence in the stability of the monetary policy.
In contrast, China’s Shanghai Composite closed in the negative territory at 3,009.41 points, down by 13.67 points or -0.45%. Investors in China expressed concerns about the country’s economic outlook, citing reports that pointed to economic weaknesses.
Tokyo’s Nikkei, on the other hand, witnessed a positive sentiment, closing at 31,949.89 points, marking an increase of 348.24 points or +1.10%. The uptick in technology stocks mirrored the positive momentum seen in the US stock market. Investors responded favorably to the Fed’s decision to hold interest rates steady for the second consecutive time.
Australia’s markets also registered gains, with the S&P/ASX 200 closing at 6,899.70 points, marking a rise of 61.40 points or +0.90%, while the All Ordinaries closed at 7,095.00 points, an increase of 70.40 points or +1.00%. The Federal Reserve’s resolution to maintain interest rates for two consecutive meetings contributed to investor confidence, hinting that the rate-hike cycle may be nearing its end.
Hong Kong’s Hang Seng index closed in positive territory at 17,230.59 points, up 128.81 points or +0.75%. The US Federal Reserve’s decision to maintain interest rates in line with expectations fueled optimism among investors. Additionally, comments from Mr. Jerome Powell, Chairman of the Fed, further bolstered the positive outlook, with the market interpreting these statements as a sign that the Fed has successfully accomplished its mission of raising interest rates.
The collective positive sentiment across Asian markets reflects the importance of the Fed’s monetary policy decisions on global financial stability. Investors are closely monitoring developments in central banks and their potential impact on regional and global economic trends.