The Federal Reserve kept its key interest rate unchanged and signaled it is likely to rise later this year. The Fed said the U.S. job market has strengthened and economic activity has picked up but business investment is soft and inflation too low. The central bank said risks to its economic outlook are "roughly balanced." It was the first time it has used that wording since late last year, when it most recently raised rates.
Among Asian bourses
Bullion, resources leads Australia market rally
Australian share market finished the session higher, after the US central bank scaled back its outlook for rate rises over the coming years. Most of ASX industry group advanced, with bullion, mining, energy blue-chip stocks being major gainer. At close of trade, the benchmark S&P/ASX 200 index rose 36 points, or 0.68%, to 5,339.60, while the broader All Ordinaries index has gained 32.10 points, or 0.59%, to 5,429.40.
Shares of materials and resources led by a rally, with gold stock enjoying their best day since the Brexit vote thanks to rise in the precious metal's price. The spot gold price itself was 0.6% higher, last fetching $US1333.35 an ounce in late Asian trade, after jumping 1.6% following the Fed decision. Gold miner Newcrest Mining was up 6.9%, Evolution Mining was 5.8% higher and Northern Star Resources rose 6.6%. Saracen Mineral Holdings was up 9.6%. BHP Billiton was the day's strongest stock by weight, up 2.7%, while Rio Tinto also rallied, up 3.3%. Woodside Petroleum rose 2.1%, Oil Search gained 1.1% and Santos picked up 2.8%.
China Stocks gain of positive offshore lead
Mainland China stock market rallied, as the U.S. Federal Reserve's decision to keep U.S. interest rates unchanged eased investor anxiety, while a spike in the price of crude oil adds to the positive sentiment. All main sectors rose, with listed materials and resources and property developers leading the charge. The CSI300 index of the largest listed companies in Shanghai and Shenzhen added 0.75%, to 3,291.12 points, while the Shanghai Composite Index grew 0.54% to 3,042.31 points.
China's yuan was down against greenback, as investors bought the US currency on the cheap after the US Federal Reserve left rates on hold and signalled a slower pace of future rate hikes. Traders also shrugged off a higher mid-point rate set by the People's Bank of China, at 6.6513 per dollar - the strongest level since Aug.26, and firmer than the previous fix at 6.6738. The spot market opened at 6.6611 per dollar and was changing hands at 6.6693 at midday, 33 pips weaker from the previous close and 0.27% weaker than the midpoint.
Hong Kong Market rises after Fed keeps rates on hold
The Hong Kong stock market ended higher, as investors cheered the decision by the US Federal Reserve to keep rates on hold and scaled back expectations for rate rises over the coming years. The market's rise was led by a rally in property and resources stocks. The benchmark Hang Seng Index added 89.90 points, or 0.38%, to 23759.80 points. The Hang Seng China Enterprises Index, a benchmark measure of performance of mainland China enterprises, gained 44.74 points, or 0.45%, to 9893.80. Turnover increased significantly to HK$86.7 billion from HK$65 billion on Wednesday.
Property counters benefit from steady interest rate. CK Property (01113) climbed 1.5% to HK$56.9. New World Development (00017) edged up 0.2% to HK$10.32. Morgan Stanley expects HK's office rental to grow 5% in 2017. Link REIT (00823) gained 2.7% to HK$56.85. Champion REIT (02778) jumped 4.1% to HK$4.83.
HSBC (00005) and Chinese financials reversed their rally in afternoon trade. HSBC dipped 1.4% to HK$58.55. BOC (03988) and Ping An (02318) softened 1.1% and 1.2% to HK$3.63 and HK$42.15.
Second-tier Macau gaming stock retreated after yesterday's spike. Neptune Group (00070) slipped 2.6% to HK$0.375. Summit Ascent (00102) slid 6.3% to HK$2.82.
Nifty attains 2-week closing high
Key benchmark indices ended higher on tracking a global rally after the US Federal Reserve kept interest rates unchanged, leaving the low-rate environment intact for now. Among sectors, rate-sensitive sectors like banks, auto and realty witnessed strong buying demand in trades today. Most metal shares edged higher as copper price edged higher in the global commodities markets. Shares of oil production and exploration firms rose as global crude oil prices rose. However, defensive sectors like IT, FMCG and select pharma took a backseat in trades today. The barometer index, the S&P BSE Sensex, rose 265.71 points or 0.93% to settle at 28,773.13. The Nifty rose 90.30 points or 1.03% to settle at 8,867.45.
Larsen & Toubro gained 2% after the company entered into a pact, valued at $99.7 million (around Rs 660 crore), with Vietnam Border Guard for design and construction of high speed patrol vessels.
HDFC Bank on Thursday said it has raised Rs 6,700 crore by issuing bonds via private placement. The stock rose over 1%.
Mahindra & Mahindra (M&M) announced the proactive inspection of a fluid hose on all New Generation Scorpio & NuvoSport vehicles, manufactured till June 2016, respectively. Shares of M&M ended slightly positive.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.4% to 7311.71. South Korea's KOSPI index grew 0.7% to 2049.70. Taiwan's Taiex index added 0.1% to 9235.26. Singapore's Straits Times index shed 0.2% to 2846.06. Indonesia's Jakarta Composite index rose 0.7% to 5380.26. Malaysia's KLCI rose 0.7% to 1669.66. Japan market closed for public holiday.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
