HONG KONG, March 22: Asian stocks closed higher on Thursday, led by sharp gains overnight on Wall Street after the US Federal Reserve left interest rates unchanged and hinted at a possible easing to come, dealers said.
They said remarks by the Fed on the US economic outlook were taken to mean that its rate tightening cycle was definitely at an end and that the next step would be a reduction, possibly within the first half of the year.
Markets responded accordingly, with Tokyo up 1.49 per cent and Sydney adding 1.6 per cent despite growing concerns there that local interest rates will have to go higher again to keep inflation in check.
TOKYO: Japanese share prices closed up 1.49 per cent at a three-week high, tracking Wall Street after the US Federal Reserve raised hopes of an interest rate cut later this year, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares rose 256.00 points to 17,419.20, the best finish since March 1.
The TOPIX index of all issues on the Tokyo Stock Exchange's first section advanced 23.51 points or 1.38 per cent to 1,731.80.
Gainers beat decliners 1,453 to 206, with 72 stocks flat.
Volume rose to 2.16 billion shares from 1.90 billion on Tuesday.
HONG KONG: Hong Kong share prices closed 0.89 per cent higher, driven by Wall Street's sharp gains overnight after the US Federal Reserve left interest rates on hold and hinted at an easier stance to come, dealers said.
Jackson Wong, investment manager at Tanrich Securities, said HSBC led the gains on short covering.
SYDNEY: Australian share prices closed up 1.60 per cent with investors buoyed by the US Federal Reserve decision to keep US interest rates steady, dealers said.
A strong performance overnight in New York after remarks by the Fed were taken to reflect a softer stance on monetary policy buoyed sentiment amid speculation that local interest rates could be headed for another hike shortly.
SINGAPORE: Singapore share prices closed sharply higher, adding 2.02 per cent led by banks and property stocks, dealers said.
The Straits Times Index jumped 63.82 points to 3,219.51 on volume of 1.79 billion shares worth 2.12 billion dollars (1.40 billion US). Gainers led losers 572 to 230, with 599 stocks unchanged.
“In Singapore, if the slant towards lower interest rates continues to play out, this is likely to favour equities in addition to lowering interest costs for corporates,” OCBC Investment Research analyst Carmen Lee said in a note to clients.
KUALA LUMPUR: Malaysian share prices closed 1.02 per cent higher, led by property and construction stocks after the government announced investment incentives and abolished property gains tax, dealers said.
The Kuala Lumpur Composite Index gained 12.38 points to 1,221.72 on volume of 2.97 billion shares worth 3.18 billion ringgit (917.09 million dollars).
JAKARTA: Indonesian share prices closed 1.68 per cent higher, supported by an overnight rally in US stocks after the US Federal Reserve left interest rates on hold, dealers said.
WELLINGTON: New Zealand share prices closed 0.58 per cent higher in the wake of a sharp rise in US stocks, dealers said.
The benchmark NZX-50 index rose 23.52 points to 4,076.03 on turnover of 110.9 million dollars (78.6 million US).
MUMBAI: Indian share prices closed 2.8 per cent higher, extending gains to a fourth day led by strong US and Asian markets after the US Federal Reserve kept interest rates unchanged, dealers said.
The Federal Reserve kept rates on hold at 5.25 per cent after a two-day meeting and hinted that the rate hiking cycle could be over. — AFP