Asian stocks gain after Federal Reserve keep U.S. interest rates low

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Asian stocks advanced Thursday after the U.S. Federal Reserve left interest rates near zero to support a struggling economy.

Lower interest rates and investor optimism about a possible coronavirus vaccine have helped global markets recover most of this year's losses. But analysts say it might be too early to bet the recovery will persist, given the rising infection numbers in the United States, Brazil and other countries.On Wednesday, Fed Chairman Jerome Powell warned that rising U.S. cases, which have led some state governments to reimpose anti-disease measures, threaten the modest recovery from the pandemic.

The Shanghai Composite Index rose 0.1% to 3,297.57 while the Nikkei 225 in Tokyo gave up 0.1 to 22,367.74. On Wednesday, the benchmark S&P 500 index rose 1.2% to 3,258.44 in its biggest daily increase in two weeks. The S&P 500, which was down 34% earlier, is back within 3.8% of its February record. That means retail sales in one of the world's biggest markets were only 0.9% lower than in February before the crisis hit, Tom Learmouth of Capital Economics said in a report.

Eastman Kodak surged 318.1%, gaining for a second day after the company won a $765 million government loan to launch a new business unit making pharmaceutical components. Shares rose to $33.20 from $2.62 on Monday.

 

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