Most Asia-Pacific stocks pared early losses on Thursday after the US Federal Reserve reaffirmed its determination to cut inflation.
The benchmark Hang Seng Index (HSI) traded 1.5% higher in Hong Kong, leading to the region’s gains. One of the top winners was internet giant Tencent, which gained more than 7 percent after reporting strong growth in its online advertising business in the December quarter on Wednesday.
The Nikkei 225 (N225) was flat in Japan after opening lower. The broader Topix index was down 0.3 percent, erasing some of the morning’s losses.
South Korea’s Kospi rose 0.2 percent, while Australia’s S&P ASX 200 gained half a percentage point.
Asian stocks opened broadly lower, trailing losses on Wall Street. The Dow closed 1.6% lower in the US, while the S&P 500 (DVS) was down about 1.7%. The Nasdaq Composite lost 1.6%.
“Looking ahead, while we see fundamental value in Asian equities outside of Japan, we remain concerned about the potential downside in US equities given the deteriorating US data in the coming months,” Nomura analysts wrote in a research note from Thursday.
US markets were choppy on Wednesday before settling into the red as investors digested the Federal Reserve’s quarter-point interest rate hike and looked for clues about the collapsing state of the banking sector.
The Federal Reserve raised interest rates by a quarter point at the end of a two-day meeting, even though a historic campaign to raise rates was a contributing factor to the banking crisis.
Investors were supported by solid indications from the central bank that the aggressive pace of rate hikes is ending. However, the central bank also warned that there would be no rate cut this year.
