Markets in Asia turn green following Fed’s rate hike

Markets in Asia traded mainly higher on Thursday following a widely expected Federal Reserve interest rate hike and upgrade of the US gross domestic product forecast.

The US regulator raised its benchmark rate by 25 basis points, leaving it in a range between 1.5 percent to 1.75 percent. Market players had priced in the monetary decision in advance.

The central bank said it expected at least two other interest rate moves this year, while upgrading its 2019 benchmark rate estimation to 2.9 percent.

Wall Street top three indexes rose sharply immediately after the announcement, while the dollar deepened losses on profit taking. As the decision was anticipated, the meeting turned out to be a buy the rumor / sell the fact event.

In Japan, the Nikkei 225 added 0.84 percent, while the Topix increased 0.46 percent, with mining and oil components rising 4.5 percent and 2.8 percent in early trading.

Seoul's Kospi index was up 0.87 percent with a vast majority of sectors moving into green territory. Technology, trading houses, manufacturing were among the best performers.

Hong Kong’s Hang Seng Index jumped 0.45 percent and China’s mainland Shanghai composite rose 0.18 percent. In Australia, the S&P/ASX 200 reversed early losses to add 0.2 percent.

<<< Stock Indexes >>>

Australia ASX S&P -12.40 -0.20% 6,040.70

Shanghai Composite -26.64 -0.81% 3,254.31

Hong Kong Hang Seng -196.47 -0.63% 31,218.05

Nikkei 225 +153.77 +0.72% 21,534.74

Taiwan TSEC 50 Index -11.49 -0.10% 10,999.58

<<< Next in Europe >>>

Germany’s manufacturing and services PMIs for March are due at 08:30 GMT, followed by business expectations, current assessment and lfo business climate index at 09:00 GMT. The European Union and the United Kingdom will also be releasing activity data at 09:00 GMT and 09:30 GMT respectively. Attention in the UK will be shifted to the monetary policy meeting of the Bank of England, although interest rates are expected to remain in place.

<<< Next in the United States >>>

Traders will keep an eye on initial jobless claims at 12:30 GMT and preliminary readings on the manufacturing and services PMIs for March at 13:45 GMT.

FortFS