On Thursday morning (20 March, 9:27 AM, GMT+7, Bangkok time), major indices in Asia Pacific traded mixed as the People’s Bank of China (PBOC) opted to keep interest rates stable, mirroring the U.S. Federal Reserve’s decision to maintain benchmark rates.
China’s central bank kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, maintaining levels set after a slight reduction in October.
In the U.S., the Fed held interest rates unchanged at 4.25% to 4.5%, but hinted at two potential rate cuts later in the year, citing projections of increasing inflation and a slowdown in economic growth.
Meanwhile, Japanese markets were closed for a holiday.
South Korea’s KOSPI surged by 0.48% to 2,641.32, and Australia’s ASX 200 jumped by 1.12% to 7,915.6.
As for stocks in China, Shanghai’s SSEC declined by 0.24% to 3,418.16. Hong Kong’s HSI contracted by 0.98% to 24,529.14, and Shenzhen’s SZI slid by 0.18% to 10,959.35.
Meanwhile, the US stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) added 0.92% to 41,964.63. NASDAQ rose by 1.41% to 17,750.79, and S&P 500 grew by 1.08% to 5,675.29. VIX plummeted by 8.29% to 19.9.
As for commodities, oil prices settled higher on Wednesday with the U.S. Federal Reserve acknowledging in a post-meeting statement regarding a rise in economic uncertainty. This came after the decision from the central bank to keep its benchmark rates steady. Brent futures gained 22 cents or 0.31% to $70.78 a barrel, and the West Texas Intermediate (WTI) increased 26 cents or 0.39% to $67.16 per barrel.
This morning, Brent futures expanded 38 cents or 0.54% to $71.16 a barrel, and the WTI escalated 34 cents or 0.51% to $67.5 per barrel.
Meanwhile, gold futures climbed 0.6% to $3,059.3 per Troy ounce.
