Asian stocks rose, with the regional benchmark index heading toward its biggest two-day gain since early October, after the Federal Reserve raised U.S. interest rates for the first time in almost a decade and signaled a gradual pace for future increases.
The MSCI Asia Pacific Index climbed 0.9 percent to 130.73 as of 9:09 a.m. in Tokyo, heading for a two day advance of 3.2 percent, as banks and health-care shares led gains. The Standard & Poor’s 500 Index capped its biggest three-day rally since Oct. 5 as Fed Chair Janet Yellen expressed confidence the world’s largest economy is resilient enough to withstand future increases in borrowing costs.
In a move that was widely telegraphed, the Federal Open Market Committee unanimously voted to set the new target range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent. Policy makers separately forecast an appropriate rate of 1.375 percent at the end of 2016, the same as September, implying four quarter-point increases in the target range next year, based on the median number from 17 officials.
Source : Bloomberg