Asian, European stocks surge on US Federal Reserve decision

Gulf Today Report 

Asian stock gained on Thursday following the US Federal Reserve announcement of keeping its key interest at near-zero through 2023. 

Benchmarks in Shanghai, Tokyo and Hong Kong advanced. Sydney retreated.

The Shanghai Composite Index rose 0.6% to 3,465.85 and the Nikkei 225 in Tokyo advanced 0.9% to 30,192.11. The Hang Seng in Hong Kong added 1.5% to 29,474.61.

The Kospi in Seoul advanced 0.7% to 3,068.01 while Sydney's S&P-ASX 200 was off 0.7% at 6,745.90. 

India's Sensex rose 0.5% to 50,043.87. New Zealand also declined while Southeast Asian markets advanced.

The US Fed pledged to keep rates near-zero, forecasting 2021 economic growth will rebound to 6.5%, its strongest since the 1980s. 

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"Inflation is expected to rise in the coming months, and the Fed may need to provide more handholding to the market during this price spike,” said Tai Hui of JP Morgan Asset Management in a report. 

European stock

European stock gained on Thursday as investors keep an eye on the Bank of England’s interest rate decision.  

The wider pan-European STOXX 600 rose 0.3% and was trading less than 2% below its all-time high.

London's benchmark FTSE 100 index gained 0.2 per cent to 6,774.10 points.

In the eurozone, Frankfurt's DAX 30 index rose 0.6 per cent to 14,678.01 points and the Paris CAC 40 added 0.4 per cent to 6,080.34.

Following the increase in US Treasury yield, automakers, banks, miners and travel & leisure led the gains in Europe.