- In Asia, stocks rose, bonds rose, and the dollar plummeted amid a wave of market relief following the Fed's decision to raise interest rates as expected to combat inflation while averting fears of large hikes.
- Hong Kong boosted the Asian share index, which was up roughly 1%. After reopening following a holiday, Chinese stocks were neutral. Futures in the US varied as the S&P 500 index rose 3%, the most since 2020.
- Australian debt soared as traders reduced their expectations on aggressive monetary tightening in the aftermath of a sharp drop in shorter-maturity bond yields in the US. Due to a Japanese holiday, there is no cash treasury trading in Asia.
- The market bounce was sparked by Fed's Powell's statement that a 75 bps raise is not something that the committee is actively considering. The Fed hiked interest rates by a half-point and hinted that it will do so again in the coming meetings.
