ASX 200 Reverses Losses as Banks Lead Charge

The ASX 200 index surprised investors by closing in the green on Thursday, despite futures pointing to a 0.8% drop earlier in the session.

The index finished at 8,732.4, up 35.9 points or 0.41%, after a morning that saw local futures dip following the Federal Reserve's decision to raise its target range by 25 basis points to 3.75%-4.00%.

However, Australian banks bucked the trend, with National Australia Bank closing at A$39.22, up 3.2%, while ANZ gained 2.1% to A$37.78. Commonwealth Bank added 1.6% to A$154.01 and Westpac rose 1.2% to A$34.83.

The outcome was seen as a reversal of the morning setup, with investors instead engaging in bargain hunting after recent weakness rather than simply copying the US close.