HONG KONG—Asian stocks were mostly lower on Thursday after the Federal Reserve (the Fed) raised rates again as expected, followed by similar moves in China and Hong Kong that dampened investor sentiment.
Japan’s benchmark Nikkei 225 index dipped 0.3 percent to 22,694.45, while South Korea’s Kospi climbed 0.5 percent to 2,492.24. Hong Kong’s Hang Seng slipped 0.5 percent to 29,069.45 and the Shanghai Composite in mainland China lost 0.5 percent to 3,286.36. Australia’s S&P/ASX 200 shed 0.2 percent to 6,011.30. Taiwan’s benchmark rose and Southeast Asian indexes were mostly higher.
The Fed raised its benchmark rate for the third time this year as anticipated, increasing its short-term rate by a quarter point. Policy-makers at the United States central bank said they plan to continue tightening and indicated that three more rate hikes are in store for 2018. The Fed also raised its growth forecast for the US economy, the world’s biggest, and predicted that the job market will continue improving. The dollar and US Treasury yields fell on the news.
“Last night’s market action suggests that currency and bond markets had built some risk premium into pricing for the Fed decision,” said Ric Spooner, chief analyst at CMC Markets. “Stock markets, on the other hand, were already priced for a Goldilocks outcome.”
Major US stock indexes finished mostly higher. The S&P 500 index slipped 0.1 percent to 2,662.85 after closing at all-time highs earlier in the week. The Dow Jones industrial average gained 0.3 percent to 24,585.43 and the Nasdaq added 0.2 percent to 6,875.80.
The dollar rose to ¥112.63, from ¥112.54 late Tuesday. The euro was flat at $1.1826.
Oil futures rebounded. Benchmark US crude rose 8 cents to $56.68 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 54 cents to settle at $56.60 per barrel on Wednesday. Brent crude, used to price international oils, added 31 cents to $62.75 per barrel in London.