A bicycle rider passes an electronic quotation board displaying share prices of the Tokyo Stock Exchange and numbers of Asian markets in Tokyo on September 17, 2020.HONG KONG, China — Asian markets rallied Thursday after Wall Street's record-breaking day as traders welcomed news that the Federal Reserve still saw three interest rate cuts this year even after recent data pointed to a bounce in inflation.
Speaking after the meeting, boss Jerome Powell admitted "inflation is still too high" but added that the recent data "haven't really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road toward two percent". "The absence of any particularly hawkish news provided a green light for the market to continue its upward trajectory," said Stephen Innes at SPI Asset Management.
The prospect of US rates coming down saw the dollar fall back against its major peers, providing some relief to the yen, which had come under pressure after the Bank of Japan said Tuesday that its first rate hike in 17 years would not be the start of a series.Hong Kong - Hang Seng Index: UP 2.5 percent at 16,952.94West Texas Intermediate: UP 0.6 percent at $81.74 per barrelNew York - Dow: UP 1.0 percent at 39,512.