Investing.com — Most Asian stocks increased on Thursday, following gains on Wall Street after the Federal Reserve’s rate decision brought no surprises. Meanwhile, Chinese markets lagged due to profit-taking after a significant rally.
Regional markets saw broad-based increases, mirroring Wall Street’s overnight jump of over 1% after the Fed maintained rates and did not alter its outlook for rate cuts. U.S. stock index futures rose in Asian trading as markets were relieved by the Fed’s decision not to take drastic action amid an escalating trade war and global economic disruptions, which had pushed Wall Street to six-month lows last week.
However, the central bank did reduce its annual growth forecast and indicated expectations for higher inflation. In Asia, trading volumes were somewhat constrained by a holiday in Japan. Australia’s stocks rose 1.1%, recovering from a recent seven-month low. Sentiment towards Australian markets was boosted by softer-than-expected jobs data, which showed an unexpected contraction in job growth in February. This data fueled expectations for an interest rate cut by the Reserve Bank of Australia, given its largely data-driven approach to further easing after a cut in February. Despite the contraction in February, other indicators suggested that the labor market remained strong.
Broader Asian markets advanced, tracking Wall Street’s strength. Optimism over more stimulus from China supported Asian markets over the past week, helping them withstand weakness among their global peers. South Korea’s index rose 0.5%, while Singapore’s index added 0.7%. Futures for India’s index pointed to a positive open, rebounding from a recent nine-month low.
Hong Kong’s index was an exception in Asia, falling 1.1% from a three-year high. Local technology and internet stocks weighed heavily on the index as investors locked in profits from the sector’s strong performance this year. Confidence in China’s artificial intelligence capabilities and optimism over more stimulus measures from Beijing drove Hong Kong’s stock rally this year, with the Hang Seng up nearly 25% so far in 2025. Broader Chinese markets also fell, with the Shanghai Composite and Shenzhen Component indexes down 0.6% and 0.3%, respectively. Attention remains on further fiscal measures from Beijing to support private spending and boost economic growth. The People’s Bank of China kept its benchmark rate unchanged, as expected.
— news from Investing.com