Asian shares were mixed in early Thursday trade as investors digested an acknowledgment by the Federal Reserve overnight that inflation had moved nearer its target.
South Korea’s Kospi index came under pressure in morning trade, with the benchmark slipping 0.24 percent while the junior Kosdaq edged higher by 0.18 percent. Banks and retailers mostly traded lower, while gains were seen in automakers and technology stocks.
Down Under, the S&P/ASX 200 climbed 0.68 percent amid broad-based gains seen in all of its subindexes, with the exception of the utilities sector. Gains were led by material names, oil producers and consumer stocks.
Markets in Japan were closed on Thursday.
Markets also digested the Fed’s decision to keepinterest rates unchanged, a move that was widely expected. The central bank noted that inflation was starting to inch higher.
In its post-meeting statement, the central bank’s Federal Open Market Committee said “overall inflation and inflation for items other than food and energy have moved close to 2 percent.” That was an upgrade from its March meeting, when the committee noted that the indicators had “continued to run below 2 percent.”
Investors had been awaiting the Fed’s statement for clues on its outlook on inflation and the economy.
Trade will also be in focus as a U.S. delegation begins negotiations with their Chinese counterparts on Thursday and Friday in Beijing. Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer are among the U.S. officials participating in the meeting.
The mixed performance in Asia came after U.S. stocks finished the day in negative territory despite strong earnings releases stateside.
Earnings are also expected from a number of corporates in the region, including Hong Kong-listed Galaxy Entertainment.
National Australia Bank announced earlier that its first-half cash profit declined 16 percent. Reuters said the fall came as the bank recorded costs associated with restructuring. Shares were lower by 0.14 percent in morning trade.
The dollar’s index, which tracks the U.S. currency against six major peers, initially dipped in reaction to the Fed’s statement, but later pared those losses. The dollar index traded at 92.747 at 8:08 a.m. HK/SIN.
Against the yen, the dollar was steady at 109.82.
Oil prices edged lower on Thursday: U.S. crude futures shed 0.49 percent to trade at $67.60 per barrel and Brent crude futures for July delivery slipped 0.48 percent to trade at $73.01.
Prices had finished the last session slightly higher despite a larger-than-expected increase in U.S. crude inventories.
