Stock Market Live Updates: Asian markets decline as Federal Reserve signals prolonged higher interest rates

Asian stock markets declined, and the U.S. dollar gained strength on Thursday following the Federal Reserve’s indication of prolonged higher interest rates.

Japan’s Nikkei 225 index dropped by 0.79% to reach 32,761.51, and Topix fell by 0.4% to 2,396.53. South Korea’s Kospi index experienced a 1.19% decline, reaching 2,529.68. Meanwhile, Australia’s S&P/ASX 200 recorded a 0.79% decrease, settling at 7,106.60.

The Federal Reserve kept its target range between 5.25% and 5.5%, and updated quarterly projections revealed that majority of officials favoured another rate hike in 2023. Additionally, policymakers anticipated less monetary easing next year

Stock Market Live Updates: U.S. stocks tumble as Fed keeps rates unchanged, warns of ongoing inflation battle

On Wednesday, U.S. stocks slumped as the Federal Reserve, as expected, held key interest rates steady while revising economic projections higher. Despite the rate stability, major indexes, including the Nasdaq, declined. The Fed’s projections indicate a possible 25 basis point rate hike later this year and a subsequent 50 basis point rate cut next year. Core inflation, although moderating, remains above the 2% target, with year-end expectations at 3.3%.

The Dow Jones Industrial Average fell 76.85 points, or 0.22%, to 34,440.88, the S&P 500 lost 41.75 points, or 0.94%, to 4,402.2 and the Nasdaq Composite dropped 209.06 points, or 1.53%, to 13,469.13.