Asia report: Markets move higher after raft of monetary policy decisions

Markets in Asia wavered on Thursday, with most finishing above the waterline, as investors sifted through monetary policy decisions out of Japan, China and the US.

Japan’s Nikkei 225 strengthened 0.07% to 19,590.14, with the yen growing stronger against a weaker greenback.

It was last slightly weaker as the country went to bed, moving away 0.01% at JPY 113.39 per $1.

The Bank of Japan stood pat on its monetary policy, maintaining its sunny outlook on the country’s economy as it signalled that it was not looking at any expansion in policy in the near-term.

On the mainland, the Shanghai Composite was up 0.86% to 3,269.54, while the Shenzhen Composite was 0.96% higher to 2,046.30.

The People’s Bank of China raised short-term interest rates on Thursday by 10 basis points, affecting both its medium-term lending facility loans and open market operation reverse repurchase agreements.

It was the third rise in as many months, with officials warning local markets that getting a handle on the country’s debt risks was a top priority.

Smartphone and cellular technology manufacturer ZTE resumed trading on Thursday morning after being suspended for eight days.

It rose 10% during the session, having had a trading halt implemented after it plead guilty to breaching US economic sanctions on Iran, agreeing to pay almost $900m in settlements.

In South Korea, the Kospi finished 0.8% higher at 2,150.08, while the Hang Seng Index in Hong Kong finished 2.08% at 24,288.28.

Traders were digesting news from the US that the Federal Reserve had raises interest rate targets by 25 basis points to 0.7%-1%.

The move had been widely expected, as confidence increased in the growth potential of the US economy.

Indications from the central bank remained that it was looking at three further moves in coming months, with most members’ expectations changing little from previous meetings.

“Even though the dot plot is not relevant because so much can change, the Fed reminded us all of the gradual nature of their expected behavior on this rate hike cycle,” noted Lindsey Group chief market analyst Peter Boockvar.

Oil prices were higher during Asian hours, with Brent crude last up 0.86% at $52.26 per barrel and West Texas Intermediate adding 0.69% at $49.20.

Australia’s S&P/ASX 200 was up 0.2% to 5,785.79, with fresh data showing a rise in the sunburnt country’s unemployment rate to 5.9% - higher than expectations for a 5.7% reading.

“The unemployment rise to 5.9 percent is a bit of a slap in the face for Reserve Bank of Australia governor Philip Lowe who, only recently, said he'd like to see it move lower,” noted ThinkMarkets chief markets analyst Matt Simpson.

“This makes it the highest since January 2016 and above the 12-month average of 5.7 percent.”

It was also revealed during the day that the federal government was looking to spend as much as AUD 2bn in increasing the output of the Snowy Mountains hydroelectricity scheme by up to 50%.

That would help to solve an ongoing electricity crisis, primarily affecting urban parts of South Australia in recent months.

New Zealand’s S&P/NZX 50 added 0.3% to 7,151.98, led higher by film industry software provider Vista Group, which rose 3.6%, while airport operator AIAL added 2.5%.

Both of the down under dollars were weaker, with the Aussie last moving away 0.29% to AUD 1.3008 against the greenback, and the Kiwi 0.68% weaker at NZD 1.4296 per $1.