Major Asian stock markets soared on Thursday, tracking U.S. markets, after the Federal Reserve hiked benchmark interest rates by 75 basis points, the most aggressive rise since 1994.
As of 10.50 hrs. local time in Thailand, Nikkei rose 1.54%, ASX 200 gained 0.43% and Kospi increased 1.62%. Meanwhile, Hong Kong’s Hang Seng dropped 0.30%.
The positive moves followed a market decline earlier in the week in response to initial news of a strong move by the Fed and mounting fears of further Covid restrictions in mainland China.
Fed on Wednesday raised key interest rate by 0.75% to the range of 1.5%-1.75%, above consensus expectations and the largest rate hike since 1994.
World leading investment banking Goldman Sachs estimates the benchmark rate to reach 3.25-3.5% at end-2022, up from the 1.875% rate projected at the March Meeting.
The Bank also altered the Federal Open Market Committee’s (FOMC) rate-hiking plan, anticipating an additional 0.75% rate increase in July, 0.50% in September, and 0.25% in November and December.