Asian Markets Mixed Amid Fed Rate Hike and Trump Trade Threats
Asian stock markets traded mixed on Thursday following an overnight retreat on Wall Street after the Federal Reserve's first rate hike in three years. Market sentiment faced additional headwinds as US President Donald Trump threatened sweeping tariffs or a partial trade halt against the European Union over its proposal to grant Canada 'associate member' status.
Despite these challenges, U.S. equity index futures pointed toward a morning rebound, with Nasdaq futures up 0.67%, S&P 500 futures gaining 0.59%, and Dow futures rising 0.61%. In the energy sector, crude oil prices moderated around $102 per barrel on expectations that Saudi Arabia would restore flows through its East-West pipeline.
South Korea's KOSPI rose 0.66% to around 6,755, while Japan's Nikkei 225 JPN225 gained 0.35% to above 64,200. In contrast, China's 000001 fell 0.38% to 3,880 as investors turned cautious ahead of high-level US-China talks this weekend.
India SENSEX rose 0.23% to 74,531 despite a weaker rupee, while Hong Kong HSI fell 0.90% to 24,410 after the Hong Kong Monetary Authority raised its base rate by 25 basis points to 4.25%, following the Fed's decision.