BEIJING - Asian stock prices surged for a second day Thursday after the Federal Reserve announced its first interest rate hike since 2008 and China promised support for its real estate and internet industries.
The Nikkei 225 NIK, in Tokyo, surged nearly 3%, while the Hang Seng HSI, in Hong Kong, rose more than 6%, adding to the previous day's explosive 9.1% gain. The Shanghai Composite Index, SHCOMP, increased by 2.6%.
The Kospi 180721, in Seoul was 1.8% higher and Sydney s S&P ASX 200 XJO added 1.1%. Benchmark indexes in New Zealand NZ 50 GR, Singapore STI, Taiwan Y 9999 and Indonesia JAKIDX also advanced.
Oil prices gained more than $1 per barrel but stayed below $100.
On Wednesday, Asian markets were buoyed by the Chinese government's promise that it would invigorate the economy by supporting the struggling real estate industry, internet companies and entrepreneurs who want to raise capital abroad.
After a drumbeat of Anti-monopoly, Data-security and Anti-Defebt crackdowns caused stock prices to drop, Chinese leaders appeared to be trying to rebuild private sector confidence.
Wall Street's benchmark S&P 500 index rose 2.2% on Wednesday after the Fed raised its short term lending rate by 0.25 percentage points. The move was widely expected but investors were reassured that it was smaller than the 0.5 percentage point hike advocated by some officials.
Shane Oliver of AMP said that first rate hikes in a tightening cycle don't usually signal the end of a bull market. They are consistent with a more constrained and rougher ride. The high inflation and the war in Ukraine add to the risks. The Fed is trying to cool the inflation that is at a four-decade high by gradually withdrawing ultra-low interest rates and other measures that boost share prices, in a move officials discussed well in advance.
After the coronaviruses hit, other central banks are preparing to withdraw the stimulus they poured into the global economy.
There is an increase in anxiety among investors about economic growth, which is also facing threats from Russia's war on Ukraine, coronavirus outbreaks in China, soaring oil prices and uncertain global consumer demand.
There are as many as seven U.S. interest rate hikes this year, according to forecasters.
Jerome Powell, chairman of the Fed, said before the Russian invasion of Ukraine, he expected inflation to stabilize in the first quarter of this year. He believes inflation will come down in the second half.
The S&P 500 SPX rose to 4,357. The Dow Jones Industrial Average DJIA was up 1.4% to 34,063. The Nasdaq composite COMP, increased by 3.8%, to 13,436. It made 55 for its biggest daily gain in 16 months.
In electronic trading on the New York Mercantile Exchange, benchmark U.S. crude CLJ 22, increased by $1.72 to $96.76 per barrel. The contract fell from $1.40 to $95.04 on Wednesday. Brent crude BRNK 22, the price basis for international oils, gained $1.78 to $99.80 per barrel in London. It dropped to $98.02 the previous session, down $1.89.
Oil prices went up in late February due to the concern that President Vladimir Putin's war on Ukraine might disrupt supplies from Russia, the second biggest exporter.
The dollar was down to 118.66 yen from Wednesday's 118.69 yen.