Dipo Olowookere
By Investors Hub
Asian stocks turned in a mixed performance on Thursday after the Federal Reserve announced its widely anticipated decision to raise interest rates by 25 basis points and projected three rate hikes in 2018, citing a strong outlook for U.S. economic growth.
Underlying sentiment remained somewhat cautious amid expectations that U.S. president Donald Trump will introduce tariffs on Chinese goods for approximately $50 billion.
China’s Shanghai Composite Index slid 17.12 points or 0.5 percent to close at 3,263.83 after the People’s Bank of China raised its short-term interest rates for the first time this year in reaction to the Fed’s rate hike. Hong Kong?s Hang Seng Index tumbled 343.47 points or 1.1 percent to 31,071.05.
The central bank lifted its 7-day reverse repo rate by 5 basis points to 2.55 percent from 2.50 percent. This was the first rate action after the appointment of Yi Gang as central bank governor.
Meanwhile, Japanese shares rose in choppy trading as pension funds and retail investors lapped up beaten-down shares, helping offset a strong yen and mixed manufacturing data.
The manufacturing sector in Japan continued to expand in March, albeit at a slower pace, the latest survey from Nikkei revealed with a manufacturing PMI score of 53.2, down from 54.1 in February.
The Nikkei 225 Index jumped 211.02 points or 1 percent to 21,591.99 as trading resumed after a national holiday on Wednesday. The broader Topix index closed 0.7 percent higher at 1,727.39.
Exporters Canon and Sony climbed around 2 percent despite a firmer yen. Oil firm Inpex jumped 4.9 percent and Japan Petroleum added 4.3 percent after crude oil prices rose to a six-week high overnight. Index heavyweights Fanuc and Fast Retailing gained 3.7 percent and 1.3 percent, respectively.
Australian shares ended a choppy session slightly lower after data showed hiring for full-time positions surged in February, with 17,500 net new jobs getting added in the month, just under forecasts of 20,000.
The benchmark S&P/ASX 200 Index dropped 13.10 points or 0.2 percent to 5,937.20, while the broader All Ordinaries Index ended down 9.90 points or 0.2 percent at 6,043.20.
Higher base metal prices helped lift miners, with heavyweights BHP Billiton and Rio Tinto climbing 2-3 percent. Santos and Woodside Petroleum rose 1-2 percent as oil prices rallied on dollar weakness as well as data showing a surprise draw on U.S. crude inventories.
The big four banks fell between 0.3 percent and 1.2 percent. Sigma Healthcare plunged 7.4 percent after its full-year underlying profit fell more than 10 percent.
