- Asian markets rose as crude oil prices eased after Saudi pipeline disruption news
- Japan's Nikkei 225 gained 0.45%, Australia's ASX 200 rose 0.34%, South Korea's Kospi up 0.5%
- US Federal Reserve raised key interest rates by 0.25% for the first time since 2023
Asian Markets Today: Asian markets extended their gains on Thursday, with major regional indices in positive territory as even after the US Federal Reserve's decision to rate key lending rates
The indices rose as crude oil prices eased after the United States assured that the Saudi pipeline which was struck by drones from Iraq will restart operations soon.
Japan's Nikkei 225 rose 0.45% 64,278.31, while Australia's ASX 200 advanced 0.34% to 8,725.10, and South Korea's Kospi gained 0.5% to 6,752.47.
Brent crude extended its decline, slipping below $105 a barrel as signs of easing supply disruptions in the Middle East reduced some of the risk premium built into oil prices.
The gains across Asian markets follow Wall Street's hefty losses in the session on Wednesday, post the FOMC's decision to raise key lending rates by 0.25% for the first time since 2023 to curb inflation.
The Dow Jones Industrial Average had plunged as much as over 600 points, or 1.21% to 51,461.90. However, global markets had been on their toes observing the pace at which the treasury yields were rising.
Fed's decision to get a grip on rising inflation in the midst of the on-going Iran conflict and energy disruptions, may have soothed traders for a longer perspective.
ALSO READ: Oil Prices On September 17: Brent Crude Falls Below $105 As Saudi Moves To Restore Key Pipeline
Fed's First Hike Since 2023
The US Federal Reserve delivered its first interest rate hike in over three years, as the Kevin Warsh-led Federal Open Market Committee took its first major step to tame persistent inflation. Benchmark lending rates were raised by 25 basis points to 3.75–4%, matching market expectations.
In its policy statement, the central bank noted that economic activity continues to expand at a solid pace, underpinned by domestic spending that has remained resilient despite ongoing macro uncertainty.
Job gains have largely kept pace with the workforce, the Fed observed, projecting the median unemployment rate to hold steady at 4.1% across both 2026 and 2027.
However, policymakers warned that inflation remains elevated, prompting the FOMC to reiterate its firm commitment to delivering price stability.
Fresh quarterly projections indicate further tightening is on the table, with 16 officials projecting at least one more rate hike in 2026. The median projection places the policy rate at 4.1% in 2026 and holding at 4.1% in 2027, while the median longer-run neutral funds rate remains unchanged at 2%.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.