· Asian shares extended declines on Thursday after the U.S. Federal Reserve signalled a higher bar to further easings, while the Bank of Japan also held off from offering more stimulus as some had hoped.
Asian equities were already on the back foot after Fed Chairman Jerome Powell took a more guarded approach to any further reductions in borrowing costs.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.6%. Hong Kong shares .HSI shed 1.36%, but Japan's Nikkei .N225 rose 0.43%.
· Japanese shares rallied to close in on this year’s peaks on Thursday, with domestic demand-led shares leading gains after a rate cut by the U.S. Federal Reserve helped boost risk sentiment.
The Nikkei share average rose as much as 1.34% to 22,255.56, edging near its year-to-date high of 22,362 hit in late August. It closed up0.38% at 22,044.45.
The broader Topix gained up to 1.24% to 1,626.52, coming within reach of its Aug. 17 peak of 1,633.96. It ended 0.56% higher at1,615.66.
The market’s gains were trimmed after the Bank of Japan kept its policy on hold, a widely expected decision but still disappointing some players who had bet the BOJ to act in-step with the Fed and the European Central Bank in easing.
The Fed cut interest rates for a second time this year, although it signalled further rate cuts are unlikely as the labour market remains strong.
· China stocks closed higher on Thursday, on rising investor bets Beijing will lower a key domestic rate to help bolster the economy following a U.S. Federal Reserve rate cut.
The blue-chip CSI300 index rose 0.4%, to 3,924.38, while the Shanghai Composite Index added 0.5% to 2,999.28 points.
Analysts believe the Fed's rate cuts and the easing by the European central bank allow China more leeway for further monetary easing.
European banks .SX7P rose 1.1%, the most among the major sectors.
The pan-European STOXX 600 index rose 0.2% with lender-heavy Milan .FTMIB and Madrid .IBEX outperforming.
Reference: Reuters
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