Asian stock markets are moving with gains on Thursday, following yesterday rally of Wall Street indicators in the wake of assurances from the chairman of the Federal Reserve that the central bank, in its fight to curb inflation, will be careful not to derail economic growth.
Fed Chairman Jerome Powell downgraded the chances of the central bank raising interest rates after the bank’s Monetary Policy Committee decided yesterday to raise its key interest rate by 50 basis points. This was the largest increase since 2000. At the same time, the Fed announced that it would begin tightening its balance sheet on June 1.
The S&P 500 climbed 3% on Wednesday, its best session in two years, after Powell assured that the Fed was not considering a further increase in US interest rates. The central banker also expressed confidence that the US economy will be able to withstand interest rate hikes without slipping into recession.
In Hong Kong the Hang Seng Index gained 0.5%, while in mainland China the Shanghai Composite strengthened by 0.7%.
In Australia the S & P / ASX 200 gained 0.8%, while in New Zealand the NZ50 gained 0.6%. Indices are also moving upwards in Singapore and Taiwan, while markets in Japan and South Korea remained closed due to local holidays.
Source: Capital
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