Regional Markets Surge After Federal Reserve’s Decision
Asian stock markets saw broad gains on Thursday, following a strong rally on Wall Street after the U.S. Federal Reserve maintained its interest rates and refrained from making any significant policy changes. The positive sentiment pushed most regional markets higher, although Chinese stocks struggled due to profit-taking after a recent surge.
Wall Street’s overnight jump of over 1% set the tone for Asian markets, as investors were relieved that the Fed had not taken any drastic action despite growing concerns about global economic disruptions and trade tensions. However, the central bank did slightly lower its annual growth forecast and signaled expectations for higher inflation.
Trading in Asia was somewhat muted due to a public holiday in Japan, with Nikkei 225 futures slipping 0.1%. Meanwhile, U.S. stock index futures showed gains during Asian trading hours, reinforcing optimism that the Fed’s steady approach would support market stability.
Australian Stocks Rebound on Rate Cut Hopes
Australia’s ASX 200 index jumped 1.1%, rebounding from a seven-month low. The rise was largely fueled by weaker-than-expected employment data for February, which indicated a contraction in job growth. This development raised expectations that the Reserve Bank of Australia (RBA) could consider further interest rate cuts in the near future.
The RBA had already lowered rates in February and emphasized a data-dependent approach to future easing measures. With inflation cooling and the labor market showing signs of slowing, investors speculated that another rate cut could be on the horizon.
Despite the weak employment figures, other indicators suggested that the Australian job market remained relatively strong. The overall positive sentiment in the region, coupled with optimism over potential stimulus measures from China, helped Asian markets maintain their momentum. South Korea’s KOSPI index gained 0.5%, while Singapore’s Straits Times index climbed 0.7%.
India’s Nifty 50 index futures also pointed to a positive opening, with the index continuing its recovery from a recent nine-month low.
Chinese Stocks Decline as Investors Lock in Profits
Unlike other Asian markets, Hong Kong’s Hang Seng index saw a decline of 1.1%, pulling back from a three-year high. The drop was mainly driven by profit-taking in the technology and internet sectors, which had experienced a significant rally earlier this year.
Chinese stocks have surged in recent months, largely due to growing confidence in the country’s artificial intelligence sector and expectations of further economic stimulus from Beijing. The Hang Seng index remains up nearly 25% in 2025, outperforming global markets. However, Thursday’s decline suggested that the rally may be cooling down.
Mainland Chinese markets also saw losses, with the Shanghai Shenzhen CSI 300 and the Shanghai Composite index dropping 0.6% and 0.3%, respectively. Investors are now focusing on potential fiscal measures from Beijing aimed at boosting private spending and economic growth.
On the monetary policy front, the People’s Bank of China kept its benchmark loan prime rate unchanged, as widely expected, reinforcing stability in financial markets. As global uncertainties persist, investors remain watchful for further policy decisions that could shape market movements in the coming weeks.
