Reacting to the reports about the possible slower pace interest rate hike in the US, the Asian markets climbed on Thursday, with Hang Sen posting a surge of 2.27 percent and close at 19,019.37.
Similarly, Japan’s Nikkei climbed 1.08 percent to 28,269.92, Korea’s Kospi 0.75 per cent to 2,490.99 and Shanghai Composite 1.21 per cent to 3,189.59.
Meanwhile, Nifty futures on the Singapore Exchange quoted 74 points or 0.39 per cent, higher at 18,990.50, hinting at a firm start for the domestic market on Thursday.
On Wednesday, Nifty had made a new all-time high with bullish trend predicted in future too. However, resistance for the index is seen at 18,800 and 19,000 levels.
The positive response in Asia came after Wall Street ended sharply higher on Wednesday as Federal Reserve Chair Jerome Powell said the central bank might scale back the pace of the interest rate hikes as soon as December.
Later, Dow Jones rose 2.18 percent to 34,589.24, S&P500 index 3.09 per cent to 4,079.97 and NASDAQ 4.41 percent to 11,468.
US interest rate
Powell confirmed on Wednesday that smaller interest rate increases were likely ahead even as he sees progress in the fight against inflation as largely inadequate. The central bank would be in position to reduce the size of rate hikes as soon as next month, he added.
But he cautioned that monetary policy was likely to stay restrictive for some time until real signs of progress emerge on inflation.
“Despite some promising developments, we have a long way to go in restoring price stability,” Powell said in remarks delivered at the Brookings Institution.
The chairman noted that policy moves such as interest rate increases and the reduction of the Fed’s bond holdings generally take time to make their way through the system.
“Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,” he added. “The time for moderating the pace of rate increases may come as soon as the December meeting.”