The Fed concluded a closely watched two-day policy meeting on Wednesday by leaving interest rates untouched, as expected, and signalling fewer rate hikes in coming months as the United States continues to face risks from an uncertain global economy.
The Federal Open Market Committee kept the target range for the benchmark federal funds rate at 0.25% to 0.5%. The median of policy makers' updated quarterly projections saw the rate at 0.875% at the end of 2016, implying two quarter-point increases this year, down from four forecast in December.
"The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen," the FOMC said. "However, global economic and financial developments continue to pose risks."
It is the third major central-bank policy event since Thursday, following an unprecedented stimulus package unleashed by the European Central Bank, and after the Bank of Japan held off from adding more to its record stimulus as officials gauge the impact of a negative interest-rate strategy adopted in January.
Among Asian bourses
Australia Market closes in positive territory
Australian share market advanced, as FOMC pared outlook for rate hike this year and Australia's unemployment rate fell to 5.8%. The US Federal Reserve scaled back expectations for future rate rises this year, citing turbulence on global finance markets. At the close, the benchmark S&P/ASX200 index advanced 49.20 points, or 0.96%, at 5168.20, while the broader All Ordinaries index grew 50.70 points, or 0.98%, to 5226.40.
The Australian Bureau of Statistics (ABS) said today that the unemployment rate decreased to 5.8% in February 2016 from 6.2% corresponding previous month.
Commodity shares led the advance as crude rallied with metals prices after the Fed decision sent the dollar tumbling against major peers. Mining giant BHP Billiton grew 2.4% to A$17.29, Rio Tinto 2.4% to A$43.73, and Fortescue Metals Group 9.1% to A$2.65. Oil Search advanced 2.8% to A$7.07, Santos 5% to A$3.99, Origin Energy 5% to A$5.26, and Woodside Petroleum 2.2% to A$26.62.
Retailers were also ended stronger. Department store operator Myer surged 12.73% to A$1.24 after it slightly improved its full-year profit forecast, on the back of strong sales growth. Accessories retailer Oroton soared 27.32% to A$2.61 after its half-yearly profit rose by 72.5%.
Nikkei falls on yen ascent
Japan share market ended down for third consecutive session, as risk sentiments weighed down by yen ascent against the dollar after the Federal Reserve signalled a slower pace of interest-rate increases amid the potential impact from weaker global growth and financial-market turmoil. The 225-issue Nikkei average fell 38.07 points, or 0.22%, to end at 16936.38. The Topix index of all first-section issues dropped 1.53 points, or 0.11%, to 1358.97. Falling issues outnumbered rising ones 915 to 872 in the TSE's first section, while 157 issues were unchanged. Volume increased to 2,207 million shares from Wednesday's 1,861 million shares.
Toshiba nose-dived 8% in the wake of a news report that the U.S. Justice Department and the Securities and Exchange Surveillance Commission are investigating suspicious accounting practices at a U.S. nuclear power unit.
Oil companies Inpex and Cosmo Energy Holdings were buoyant, along with trading houses Mitsui and Itochu, after crude oil futures in New York rebounded sharply on Wednesday.
China Market extends gain
Mainland China stock market ended stronger after swinging between negative and positive territory on the back of bargain hunting in technology and media stocks after U.S. Federal Reserve officials scaled back their forecasts for interest-rate increases. The benchmark Shanghai Composite Index rose 0.21%, or 6.06 points, to 2870.43, while the Shenzhen index ended 3.41% higher at 9,791.85 points. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 15.29 points, or 0.5%, to 3090.03. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, soared 5.55% to close at 2,087.29 points, reversing consecutive falls in the past two sessions.
Technology and consumer-discretionary companies led gains among industry groups, with East Money Information Co. and Hundsun Technologies Inc. jumping by their daily limit of 10%.
Shares related to artificial intelligence were among the big gainers. Hanwang Technology Co. added 5.41%. Unisplendour Corp., a high-tech company specializing in electronics and information technology, climbed 5.11%.
Media companies also closed broadly higher. Beijing Bashi Media Co. increased by the 10-percent daily limit.
Hong Kong Stocks surges
The Hong Kong stock market advanced, lifted primarily by information technology and machinery stocks and also supported by global equity gains after the U.S. Federal Reserve reduced the number of interest rate hikes expected this year. The benchmark Hang Seng Index added 246.11 points, or 1.21%, to 20503.81 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 202.47 points, or 2.36%, to 8773.836 points. Turnover increased to HK$70.7 billion from HK$58.7 billion on Wednesday.
Shares China Unicom (00762) was the best blue-chip performer. It surged 9% to HK$9.98 as its 2015 earnings came in higher-than-expected at RMB10.6 billion. China Mobile (00941) dipped 2% to HK$84.55 after it reported an 0.6% decline in 2015 earnings to RMB108.5 billion. It was the worst blue-chip loser.
CKI Holdings (01038) softened 1% to HK$75. Power Assets (00006) gained 3% to HK$77.65 after Citi Research upgraded its rating to "buy", and noted that the utility could declare a special dividend of HK$20 per share.
Oil majors rose across the board as US April future oil jumped 5.8% on hopes that the oil producing countries may reach agreement on capping oil output. CNOOC (00883), PetroChina (00857) and Sinopec (00386) rose 5%, 4% and 2% to HK$9.14, HK$5.42, and HK$4.85, respectively.
Indian indices see divergent trend
A divergent trend was witnessed between the two key benchmark indices, with the barometer index, the S&P BSE Sensex, registering minuscule losses and the 50-unit Nifty 50 index registering small gains. The Sensex fell 5.11 points or 0.02% to settle at 24677.37. The Nifty rose 13.80 points or 0.18% to settle at 7,512.55. The rally on the domestic bourses fizzled out at the fag end of the trading session as European stocks reversed initial gains.
Shares of public sector oil marketing companies (PSU OMCs) rose after announcing a hike in petrol and diesel prices. Shares of oil exploration and production firms rose after a surge in international crude oil prices. ONGC moved higher after the company said that its overseas investment arm ONGC Videsh and Rosneft have signed a memorandum of understanding (MoU) for the acquisition of 11% shares in Vankorneft, a wholly owned subsidiary of Rosneft. GAIL (India) surged after piped and natural gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) raised the tariff on GAIL's K.G. Basin natural gas pipeline network sharply.
Most metal and mining stocks gained as copper prices rose in global commodity markets. Pharma stocks declined on firm rupee.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 added 0.2% to 6573.45. Taiwan's Taiex index rose 0.4% to 8734.54. South Korea's KOPSI climbed 0.7% to 1988. Malaysia's KLCI rose 0.6% to 1703.19. Singapore's Straits Times index rose 1.3% at 2880.17. Indonesia's Jakarta Composite index climbed 0.5% to 4885.69.
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