Gains in Asia in the wake of Fed practices

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Asian stocks gained ground on Thursday after Federal Reserve minutes released yesterday showed the central bank is poised to raise interest rates further to tackle inflation even if it hurts growth.

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On the board, Japan’s Nikkei 225 rose 1.5% to 26,490.53 points.

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In Hong Kong, the Hang Seng is moving with slight losses of 0.2%, while in mainland China, the Shanghai Composite Index is up 0.2%.

South Korea’s Kospi jumps 1.9%, while Australia’s S&P/ASX 200 gains 0.8%. Small gains are noted by indices in Malaysia and Indonesia.

Fed minutes released yesterday showed that officials at their last meeting reported how “an even more restrictive direction [της νομισματικής πολιτικής] will be the appropriate approach” to return inflation to the 2% target. Officials acknowledged that this could weaken the economy.

The Fed last month raised interest rates by 75 basis points to 1.5% to 1.75%, its biggest rate hike since 1994. Central bank chairman Jerome Powell indicated the Fed plans to make another an increase of 50 bp. or 75 m.v. at the July meeting. Minutes of the meeting confirmed that officials agree that such an increase would be appropriate.

Source: Capital

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