Asian markets were mostly higher on Thursday after the Federal Reserve delivered its first interest-rate increase in more than three years, helping calm the recent sell-off in global bond markets.
The Fed raised its target range by 25 basis points to 3.75%-4.00%, citing still-elevated inflation. Updated projections point to one further rate increase this year, with no additional hikes currently expected in 2027.
The US dollar climbed to a seven-week high against major currencies after the Fed raised rates by 25 basis points, as investors increasingly considered another increase later this year.
Japan’s Nikkei gained 0.3%, while the broader MSCI Asia-Pacific index outside Japan also rose 0.3%. Chinese blue-chip shares slipped 0.2%, and Hong Kong’s Hang Seng fell 0.7%.
Higher interest-rate expectations weighed on commodities, with oil prices giving back some recent gains after surging amid Middle East supply concerns.
Wall Street had closed mostly lower following the Fed decision, with the Dow Jones falling 1.2% and the S&P 500 declining 0.4%, while the Nasdaq Composite finished broadly unchanged.
Attention now turns to the Bank of England, which is widely expected to keep UK interest rates unchanged at 3.75%.
European markets are expected to open modestly higher, with FTSE 100 and CAC 40 futures up around 0.2% and Germany’s DAX indicated 0.3% higher.
Thursday’s UK corporate calendar includes results from Next, Galliford Try and Beauty Tech Group, while investors will also watch final eurozone inflation figures and US jobless claims.
