Japan – Korea stocks welcomed the Fed’s decision

The rise of Asia-Pacific stocks widened on March 18 trading day when investors welcomed the policy decision of the US Federal Reserve (Fed).

Korea’s Kospi index rose 0.61% on March 18 trading day. Photo: AFP

Japan’s Nikkei 225 index rose 1.01% to 30,216.75 points, while the Topix index rose 1.23% to 2,008.51 points. On the Korean market, the Kospi index closed with 3,066.01 points, an increase 0.61%, while the Kosdaq increased 0.64% to 949.83 points.

In Hong Kong, the Hang Seng Index strengthened stronger and ended the deal with 29,384.84 points, rose 1.21%, while Singapore’s Straits Times index reached 0.74% gain during the end of trading hours.

Mainland Chinese stocks also picked up the green, with the Shanghai Composite Index up 0.51% and closing at 3,463.07 points, and Shenzhen Component up 1.12% to 13,963.92 points.

On the contrary, Australian stocks reversed the regional wave when the ASX 200 index dropped 0.73% to 6,745.90 points because most of the stock groups were in red. Energy and materials stocks tended to recover from the previous “floor red” session and closed sequence 0.04% and 0.1% increase.

On the US market, the Dow Jones industrial average closed above 33,000 points for the first time, while the yield on US Treasury bonds declined after the very dovish Fed policy decision. The Fed has high expectations for US economic growth, but the agency said there will be no base rate hikes until 2023.

Fed Chairman Jerome Powell forecasts that inflation in 2021 will increase when compared to the early days of Covid-19 outbreak in 2020. However, Mr. Powell believes that the risk of inflation is not enough to be enough. Policy changes to target inflation above 2% over a given period.

According to “dot chart” forecasts members’ interest rates US Federal Open Market Commission, 4 out of 18 people think there should be a hike in the prime rate by 2022. For 2023, 7 members forecast the base rate will skyrocket compared to the forecast. interest rate in December 2020.

Quarterly, the members of the US Federal Open Market Commission make short, medium and long-term forecasts of interest rates. These predictions are visualized on a dotted chart.

“The statement of the US Federal Open Market Commission is very similar to the one in January,” commented experts from Commonwealth Bank (Australia). They emphasize that the US Federal Open Market Commission has noted that recently the indicators of economic activity and employment have improved. But, this time’s statement US Federal Open Market Commission maintains that the current Covid-19 crisis continues to pose “significant risks to the economic outlook” and that the current level of policy remains relevant.

Commonwealth experts assessed: “The combination of the constant median dots and the dovish comments of the Fed Chairman has pushed US Treasury yields and the US dollar down (after yields). increase at the beginning of the transaction day) “.

As for the currency market, the greenback fell before the Fed made a policy decision, with the US dollar index against other major currencies falling below 91,900. However, this index in Asian trading hours today edged up 0.22% to 91,642. Meanwhile, the Japanese yen weakened to 109.20 JPY for 1 USD, compared to 108.62 JPY / USD set earlier. In contrast, the Australian dollar inched 0.12% to $ 0.7803 USD 1 AUD.

Oil prices traded by Asian hour today decreased. Price of US crude oil for futures delivery slipped 0.91% to $ 64.01 / barrel while Brent futures prices fell 0.96% to $ 67.35.

World energy prices fell last night as traders fear that fuel demand will decline and US inventories will increase. Concerns have emerged in Europe that the continent’s economic recovery could be halted after some countries suspended injections of the drug firm AstraZeneca’s Covid-19-resistant vaccine over fear of side effects. after injection.