Asian stock markets are trading mixed on Thursday following the US Federal Reserve's decision to hold interest rates steady and push back against expectations for a March rate cut. The Fed kept the federal funds rate target range at 5.25 to 5.50 percent and said it needs greater confidence that inflation is moving sustainably toward 2 percent before lowering rates. Fed Chair Jerome Powell indicated it is unlikely the central bank will reach that confidence level by the March meeting, and the probability of a March cut fell to 36.5 percent according to CME Group's FedWatch Tool. Australia's S&P/ASX 200 fell 1.13 percent, snapping an eight-session winning streak, while Japan's Nikkei 225 dropped 0.91 percent, with Aozora Bank plunging 21.5 percent. In contrast, Hong Kong's market rose 2.1 percent and South Korea's gained 1.3 percent.
Aozora Bank, Ltd.Aozora Bank plunges 21.5% amid market reaction to Fed's rate stance.
Fed holds rates and signals no March cut, keeping policy rate high.
Fed's hawkish stance supports higher yields, pressuring bond prices.