Asian stocks edge higher as Fed hike eases bond fears, China shares lag

 Asian stocks edged higher on Thursday after the Federal Reserve delivered its first interest-rate hike since 2023, with Chair Kevin Warsh’s focus on inflation helping calm a recent bond-market selloff.

U.S. equity futures strengthened in Asian trade, with Nasdaq 100 Futures up 0.6% and S&P 500 Futures gaining 0.7% to, after Wall Street fell following the Fed decision.

The central bank unanimously raised its benchmark rate by 25 basis points to 3.75%-4%, while its projections pointed to one more increase this year. Money markets now price about a 50% chance of another hike in October, while a December increase is fully priced.

Treasuries, meanwhile, pared losses. The two-year yield fell 1 basis point to 4.72% after reaching its highest since 2024 in the previous session, while 10- and 30-year yields each fell about two basis points.

DBS strategist Philip Wee said the Fed decision also reinforced its independence from the White House, putting it on a collision course with President Donald Trump, who has called for rates to be cut to 1% or lower.

Chip stocks mixed as investors weigh Fed, AI outlook

The MSCI Asia Pacific index rose 0.4%, while South Korea’s KOSPI gained 0.3% and Japan’s Nikkei 225 rose 0.4%. Hong Kong’s Hang Seng, however, fell 1.1%, while the CSI 300 lost 0.4%.

Asian semiconductor shares were mixed after the post-Fed rebound in U.S. futures. SK Hynix fell 0.9%, while Samsung Electronics was unchanged at 253,500 won.