Asian Stocks Follow Wall Street Behavior After Fed Rate Hike
Asian stock prices surged for a second day Thursday, Mar. 17, 2022, after the Federal Reserve announced its first interest rate hike since 2008 and China promised support for its real estate and internet industries, Joe McDonald reported for the Associated Press (AP).
Photo Insert: The Hang Seng in Hong Kong rose 6.2% to 21,330.72, adding to the previous day’s explosive 9.1% gain.
Hong Kong’s benchmark jumped more than 6% and Tokyo gained more than 3%. Shanghai, Seoul, and Sydney also advanced. Oil prices gained nearly $2 per barrel but stayed below $100.
Wall Street’s benchmark S&P 500 index rose 2.2% on Wednesday after the Fed raised its short-term lending rate by 0.25 percentage points. The widely anticipated change was less than the 0.5 percentage point hike advocated by some officials.
Asian markets also were buoyed by Wednesday’s promise by the Chinese government that it would “invigorate the economy” by supporting the struggling real estate industry, internet companies, and entrepreneurs who want to raise capital abroad.
Chinese leaders appeared to be trying to rebuild private sector confidence after a drumbeat of anti-monopoly, data security, and anti-debt crackdowns caused stock prices to plunge.
The Hang Seng in Hong Kong rose 6.2% to 21,330.72, adding to the previous day’s explosive 9.1% gain. The Nikkei 225 in Tokyo surged 3.5% to 26,508.77 and the Shanghai Composite Index advanced 2.6% to 3,252.97.
The Kospi in Seoul was 1.8% higher at 2,705.94 and Sydney’s S&P-ASX 200 added 1.1% to 7,257.30. India’s Sensex opened up 1.8% at 57,811.37. New Zealand and Southeast Asian markets also gained.