Asian Stocks Witness Tremendous Rise Post Anticipated Interest Rate Hike

On Thursday (July 27), Asian stocks rose and the dollar fell after a well-anticipated US rate hike delivered no major surprises, though policymakers in Europe and Japan could pose risks to markets with their own interest rate decisions.

S&P 500 futures rose 0.2%, while Nasdaq futures rose 0.5%, helped by a 6.8% increase in Meta Platforms in after-hours trading. Facebook's parent company reported a significant increase in advertising revenue, exceeding Wall Street expectations.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2% on speculation that the US tightening cycle has ended. The Nikkei in Japan was depressed.

China's blue chips gained 0.6%, while Hong Kong's Hang Seng index gained 1.5%.

During the closely watched press conference, Chair Jerome Powell remained noncommittal about the likelihood of a hike at the next meeting in September, though analysts said continued slowing inflation and weaker economic data may prompt policymakers to pause.

On Thursday, US Treasury yields were mostly unchanged. The 10-year Treasury note yield remained at 3.8609 percent after falling 6 basis points overnight.

The rate-sensitive two-year note was unchanged at 4.8287 percent, having fallen 7 basis points overnight.

Oil prices were higher elsewhere. Brent crude futures were up 0.9% at US$83.69 per barrel, while US West Texas Intermediate crude futures were up 1% at US$79.59.

Gold prices increased 0.4% to $1,979.47 per ounce.