Asian Markets Shrug Off Fed Hike

Asian equity markets edged up on Thursday, shrugging off the US Federal Reserve 0.25 percent interest rate hike to 1 percent, the highest rate since 2008.

The Shanghai Composite, Nikkei and Hang Seng were up 0.72, 0.07 and 1.45 respectively, signaling a bullish trend amongst Asian investors in the face of key central bank rate decisions.

Japan voted 7-2 Thursday to keep rate at -0.1, no change since 2006. The UK rate decisions is due at London noon.

Whilst equities are holding, the resilience of Asian bond markets to the potential fund flow reversal from emerging markets to US Treasuries will be tested in the coming days as fund managers recalibrate fixed income portfolios and lock in the rate hike.