The US Federal Reserve Building is seen in Washington, DC, May 3, 2023. – The US Federal Reserve is widely expected to raise its benchmark lending rate for a 10th — and possibly final — time, as it aims to bring down inflation while preventing fresh banking concerns from spreading. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)
Saul Loeb | Afp | Getty Images
Asia-Pacific markets declined after the U.S. Federal Reserve hiked rates by 25 basis points as widely expected, bringing the federal funds rate range to 5%-5.25% — its highest level since August 2007.
However, the Fed did hint at a possible pause to hikes. The post-meeting statement omitted a sentence present in the previous statement saying that “the Committee anticipates that some additional policy firming may be appropriate” for the Fed to achieve its 2% inflation goal.
In Australia, the S&P/ASX 200 fell 0.63%, ahead of the country’s March trade data due later Wednesday. South Korea’s Kospi opened 0.49% down, while the Kosdaq lost 0.24%.
Futures for Hong Kong’s Hang Seng index were also lower standing at 19,656, compared to its last close of 19,699.16.
Mainland Chinese markets are set to reopen after the Labor Day holiday, while Japanese markets are closed for a holiday Thursday.
Source link: https://www.cnbc.com/2023/05/04/asia-markets-after-fed-raises-rates-and-hints-hikes-could-end.html