Nikkei declines while Kospi and ASX plunges due to Fed interest rate hike

Nikkei declines

Asian shares ended up diverse as Wall Street settled higher after the Federal Reserve lifted its interest’s rates while maintaining a non-hawkish position.

Kospi in South Korea edged up by 1.05 percent in latest trade, while the Japanese benchmark Nikkei 225 declined 0.45 percent as the yen was bolstered against the sluggish dollar. Bank of Japan, together with Bank Indonesia is set to release their decisions on monetary policy at any moment.

Meanwhile from the Down Under, the ASX 200 added 0.36 percent. The government of Australia is scheduled to spend more than A$2 billion ($1.54 billion in USD) to widen the output of the Snowy Mountains Hydroelectric scheme by more than 50 percent to resolve power dilemmas.

The Federal Reserve lifted its interest rate gauge by 25 points, aiming at a range of 0.75 percent to 1 percent in a widely-announced move. The interest rate hike comes in between the rising confidence that the economy hovered for further growth.

Amidst the Asian exchange, U.S. crude added 0.57 percent to $49.14 per barrel and Brent crude futures edged up by 0.66 percent to $52.15 per barrel.The price of oil took its highest leap for the first time in a week last Wednesday amid U.S. hours on an unexpected decline in U.S. crude inventories.

Stocks in the U.S. settled higher last Wednesday. The S&P 500 added 0.84 percent to end at 2,385.26, the NASDAQ composite was up by 0.74 percent to end at 5,900.05 and the Dow Jones industrial average edged up 0.54 percent, closing at 20,950.1.

Meanwhile in currency, the U.S. dollar index edged down below 101 to trade at 100.53.The sluggish dollar aided to make the currency-denominated crude less pricey for holders of other currencies.

Two currencies surpassed the dollar; the Aussie dollar was higher at $0.7700 versus last week’s $0.76 and the Japanese yen at 113.32.


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