Asian stocks rise after Fed eases rate hike fears

Asian stocks and US futures climbed on Thursday after the Federal Reserve downplayed the possibility of an interest rate hike, calming investor jitters, Reuters reported.

The MSCI broadest index of Asia-Pacific shares outside Japan gained 0.7 per cent, led by a two per cent surge in Hong Kong’s stock market. However, Tokyo’s Nikkei remained largely unchanged.

The Japanese yen experienced a volatile session. Shortly after Powell’s remarks, the yen strengthened against the dollar, reaching a high of 153 yen before retreating to around 156 yen in Asian trading.

This marked the second sudden jump for the yen this week, with markets suspecting intervention by Japanese authorities to curb its depreciation.

European futures trading exhibited mixed results, with EUROSTOXX 50 futures down 0.2 per cent and FTSE futures up 0.4 per cent.

US S&P 500 futures advanced 0.5 per cent, indicating a potential recovery for the cash market after a late slide on Wall Street.

Oil prices edged higher after a steep decline earlier in the week due to demand concerns and a surprise increase in US stockpiles. Brent crude futures rose 54 cents to $83.98 per barrel, while US crude reached $79.52 per barrel.

Treasury yields rose slightly in Asia after initial declines following the Fed’s announcement of a slower balance-sheet runoff plan. In contrast, commodity markets remained subdued due to China’s market closure for the rest of the week.

Gold prices, however, witnessed an overnight rise and held steady at $2,314.44 in Asian trade.