Asia markets mixed after Fed delivers first rate hike in 3 years

September 17, 2026 (MLN): Asian markets traded mixed on Thursday as investors assessed the impact of the U.S. Federal Reserve’s first interest rate hike in three years, while easing oil prices and ongoing Middle East tensions remained in focus.

Japan’s Nikkei 225 gained 0.87%, while the broader Topix advanced 0.71%. South Korea’s Kospi climbed 1%, with the small-cap Kosdaq rising 0.57%, according to CNBC.

In Hong Kong, the Hang Seng Index declined 0.49%, while mainland China’s CSI 300 slipped 0.16%. Australia’s S&P/ASX 200 edged up 0.16%.

The mixed regional performance came after U.S. stocks closed lower in the previous session. The Dow Jones Industrial Average fell more than 630 points, or 1.2%, while the S&P 500 declined 0.5%. The Nasdaq Composite ended marginally lower.

Oil prices moved lower after the Trump administration sought to reassure markets that Saudi Arabia’s damaged East-West pipeline is expected to resume operations within days. However, geopolitical risks remained elevated, with Iran vowing to continue fighting amid the ongoing Middle East conflict.

The Federal Reserve raised its benchmark federal funds rate by 25 basis points on Wednesday, taking the target range to 3.75%-4%, in a widely anticipated decision.

Policymakers indicated that another rate increase could be possible later this year, while Fed Chairman Kevin Warsh said inflation remains elevated.

The latest U.S. consumer price index showed inflation at 3.4% in August, while crude oil prices have moved above $100 per barrel, adding to concerns over persistent price pressures.

Investors will now focus on upcoming U.S. economic indicators, including weekly jobless claims and August housing starts, for further signals on labor-market conditions and the impact of higher borrowing costs on the housing sector.

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