Asian Stocks Are Mixed After Wall Street Slips Following Fed's Rate Hike Decision
The Federal Reserve raised interest rates to combat inflation, leading to a stronger dollar and easing bond yields, while Asian equity markets saw gains.
- On Thursday, the Federal Reserve hiked interest rates by a quarter-percentage point to a target range of 3.75%-4.00%, marking the first increase in three years as Asian shares showed mixed reactions.
- Fed Chair Warsh stressed inflation has been "too high" for "too long," stating the hike removed a "dose of accommodation" to align financial conditions with the central bank's price stability objectives.
- Following the announcement, the two-year U.S. Treasury yield jumped to 4.72% from around 4.67% late Tuesday, while regional Asian indices showed mixed performance as investors digested the policy shift.
- The dollar strengthened against global peers, trading at $1.3375 against the pound and $1.1461 against the euro, as analysts noted the rate increase bolstered the Federal Reserve's credibility on inflation.
- Amid the Middle East crisis, oil prices remain above $100 a barrel while Saudi Arabia works to restore pipeline capacity following attacks, keeping inflationary pressure despite the Fed's tightening move.
21 Articles
21 Articles
Asian stocks are mixed after Wall Street slips following Fed's ra
Currency traders pass by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Thursday, Sept. 17, 2026. (AP Photo/Ahn Young-joon)
Global Market Today: Asian stocks tick higher as markets weigh further Fed hikes
In a strategic shift, the Federal Reserve raised interest rates by 0.25%, aiming to address ongoing inflation challenges. This decision led to a dip in Asian sovereign bonds and the dollar, while gold maintained its losses. Interestingly, Asian stock markets posted minor gains, leaving investors speculating about the future trajectory of monetary policy adjustments.
The Fed's decision to raise interest rates caused the yen to fall by as much as 1% overnight, dropping to 156.42 yen/USD, erasing the strong recovery seen earlier this month. World gold prices fell by more than 1% after the Fed raised interest rates. Wall Street was awash in red after the Fed raised interest rates. Asian stock markets rallied awaiting news from the Fed.
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