On Thursday, Asian stock markets exhibit mixed with Tokyo stocks buoyed higher as the yen weakened against the U.S. dollar. Chinese markets fell after the Federal Reserve kept interest rates unchanged as expected. Positive outlook on economic and corporate earnings growth lifted investor sentiment.
Japan’s Nikkei 225 gained 1.3 percent to 23,393.57 while Kospi of South Korea rose 0.1 percent to 2,568.28. Hang Seng Index of Hong Kong fell 0.1 percent to 32,843.20. Shanghai Composite Index of China dipped 0.9 percent to 3,449.93. S&P/ASX of Australia added 0.8 percent to 6,083.60. Southeast Asian stocks were mixed.
U.S stocks closed with marginal gains on Wednesday, ending a two-day losing streak. The S&P 500 index gained 0.1 percent to 2,823.81. The Dow Jones industrial average jumped 0.3 percent to 26,149.39. The Nasdaq composite added 0.1 percent to 7,411.48.
Fed Keeps Interest Rate Unchanged
The U.S. Fed left its benchmark interest rates unchanged but said inflation possibly would increase this year, boosting expectations that borrowing costs will remain to increase under incoming central bank Chief Jerome Powell.
Mentioning solid gains in employment, household spending, and capital investment, the Fed said it projected the economy to grow at a moderate speed and the market to continue on its robust state in 2018,
“Inflation on a 12-month basis is expected to move up this year and to stabilize” around the Fed’s target of 2 percent over the medium term, the central bank said in a statement after a two-day policy meeting, which the latter is under Fed Chair Janet Yellen.
In electronic trading on the New York Mercantile Exchange, the benchmark U.S. crude surged 4 cents to $64.77 per barrel. The contract added 23 cents to end at $64.73 per barrel on Wednesday. Brent crude, which is being used to price international oils, gained 5 cents to $68.94 per barrel in London.
The dollar climbed to 109.36 yen from 109.20 yen. The euro rose to $1.2420 from $1.2411.
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