Asian stocks saw a significant rise on Thursday, as investors reacted positively to the US Federal Reserve's hint at potential rate cuts in 2024. As the dollar weakened, the price of gold rose to a new high of $2,200 per ounce, while oil bounced back after a sharp drop in the previous night's US trading.
In China, the Shanghai Composite index remained mostly unchanged closing slightly lower at 3,077.11, amid worries of slow growth and a consistently weak property market. In contrast, the Hang Seng index in Hong Kong saw a 1.93 percent rise, closing at 16,863.10.
Japan's markets also fared well, with traders returning from a holiday and positive news of the country's exports increasing for a third consecutive month due to increased demand in key markets. The Nikkei average surged 2.03 percent, closing at a record high of 40,815.66. Similarly, the broader Topix index settled 1.64 percent higher at 2,796.21.
In the corporate sector, retail giant Fast Retailing and SoftBank Group saw their shares rise by 2.8 percent and 5 percent, respectively. Meanwhile, Toyota Motor saw a 3.4 percent increase in its share price.
The Japanese yen saw a slight increase as manufacturing activity showed positive signs in March, leading to predictions of the Bank of Japan initiating a rate hike around July or October.
Leading the gains in the region, Seoul stocks soared on predictions of the Bank of Korea commencing interest rate cuts in July. The benchmark Kospi average reached a nearly two-year high at 2,754.86. Electronics giant Samsung saw its shares grow by 3.1 percent following a 5.6 percent rise the previous day, while shares in SK Hynix saw a significant 8.6 percent boost.
In Australia, stocks rose sharply following data that indicated a significant recovery in employment in February, driving the joblessness rate well below expectations. The S&P ASX 200 rallied 1.12 percent, hitting a new high, while the broader All Ordinaries index ended 1.13 percent higher. Gold mining companies led the surge, in response to the increase in gold prices.
Despite revealing that the country has entered its second recession in 18 months due to aggressive interest-rate hikes aimed to curb inflation, New Zealand's benchmark S&P NZX-50 index still managed to rise by 0.70 percent, closing at 11,915.71.
In the US, share prices rose while bond yields dropped after the Fed decided to hold interest rates steady for a fifth meeting in a row. The Fed also reiterated its projection for three rate cuts in 2024. Encouraged by the Fed Chair Jerome Powell's announcement of a likely rate cut this year, the S&P 500 grew by 0.9 percent, setting a record high for a second consecutive day. Both the Dow and the tech-centric Nasdaq Composite also reached record highs, climbing 1 percent and 1.3 percent, respectively.
