Asian stocks advanced on the prospect of ultra-easy monetary policy as the U.S. Federal Reserve kept interest rates near zero. Fed deemed it necessary to salvage the ailing economy, dragging the dollar down to a two-year low.
The target range for short-term rates remained between 0% and 0.25% as agreed by all Fed members. The agency kept interest rates within this bracket since March 15 when the coronavirus started spreading across the country.
The Nasdaq, the Dow, and the S P 500 closed firmer brought by the unchanged policy and Fed s pledge of implementing full range of tools if necessary.
The confidence was felt in Asia as Japan s benchmark Nikkei and South Korea s KOSPI both advanced 0.3%. Australia s main index jumped 0.7%, while Hong Kong s Hang Seng index recorded a 0.2% gain. MSCI s broadest index of Asia-Pacific shares hiked 0.4%.
https://www.umarkets.com/en/news/asian-stocks-jump-dollar-plunges-on-fed-policy