Asia report: Most markets advance as Fed holds rates steady
By Josh White
Date: Thursday 21 Mar 2019
(Sharecast News) - Most markets in Asia were in positive territory as they closed on Thursday, as investors digested news that the US Federal Reserve was standing pat on interest rates, and likely continuing to do so for the rest of the year.
In Japan, markets were closed for Vernal Equinox Day, as the yen strengthened 0.11% against the dollar to last trade at JPY 110.58.
On the mainland, the Shanghai Composite was ahead 0.35% at 3,101.46, and the smaller, technology-heavy Shenzhen Composite added 0.77% to 1,697.49.
South Korea's Kospi was 0.36% firmer at 2,184.88, while the Hang Seng Index in Hong Kong slipped 0.85% to close at 29,071.56.
The blue-chip technology stocks were well into the green in Seoul, with Samsung Electronics rising 4.09% and SK Hynix ahead 7.66%.
Those gains came on the back of a strong earnings report from US chipmaker Micron on Wednesday, as the firm predicted a return to growth for the industry by the fourth quarter.
Sentiment was relatively chipper early in the session, after the Federal Reserve held its interest rate targets steady in the US overnight, and made noises suggesting there would be no further rate hikes this year.
That was a backflip on rhetoric just last quarter, when the Fed had two rate rises pencilled in for 2019.
Oil prices were lower as the region went to bed, with Brent crude last down 0.57% at $68.11 per barrel, and West Texas Intermediate falling 0.7% to $59.81.
In Australia, the S&P/ASX 200 eked out gains of 0.03% to 6,167.20, with the benchmark being dragged down by the hefty financials subindex.
The big four banks were in a mixed state, with Australia and New Zealand Banking Group up 0.38% and Commonwealth Bank of Australia ahead 0.48%, while National Australia Bank fell 0.44% and Westpac Banking Corporation slipped 0.04%.
Fresh data out of Canberra showed the sunburnt country's unemployment rate reached close to an eight-year low in February.
Commonwealth Bank of Australia senior economist Gareth Aird noted the ongoing disconnect between the country's weak activity data and its seemingly strong employment market.
"Today's data essentially validates why the [Reserve Bank] has said that the next move in interest rates could be up or down," Aird wrote.
Across the Tasman Sea, New Zealand's S&P/NZX 50 was up 0.3% at 9,461.31, led higher by energy generator and retailer Meridian, which was 2.9% firmer.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.21% at AUD 1.4023, and the Kiwi advancing 0.28% to NZD 1.4488.
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