Asian stock markets rose on Thursday following a sharp spike on Wall Street after the Fed announced it was tapering its asset purchases but insisted it would not rush to raise interest rates.
The ASX 200 (+0.5%) was supported by gains in the financial and technology sectors but was capped after weak Australian retail sales data.
The Nikkei 225 (+0.8%) rose after returning from the holidays and was supported by gains in USD/JPY.
The Hang Seng (+0.1%) while the Shanghai Composite (+0.6%) traded higher amid a positive market mood but was capped after another liquidity drain by the PBoC despite suggestions by the Chinese press that repo action reversed recently this indicates a stabilization effort.
WTI crude futures fell below the $ 80 a barrel level on Thursday amid a rise in U.S. crude stocks and news that Iran is set to resume talks with world powers this month.
Gold prices traded around the $ 1,775 level on Thursday after the Fed said it would not rush to raise interest rates.
The US dollar recovered to 94.00 levels after investors digested the results of the Fed meeting early Thursday morning. The Federal Reserve (Fed) has kept interest rates unchanged in the 0.00% -0.25% range and announced to make a reduction on its asset purchases of USD 15 billion, in line with market expectations.
EUR/USD slipped to 1.5800 ahead of the European session amid a strong dollar as well as ECB policymakers have kept monetary policy unchanged, even as inflation soared to a new 13-year high in October.
The JPY lost traction as investors shifted back to riskier assets amid risk-on market sentiment.