Asia-Pacific were mixed after the U.S. Federal Reserve hiked rates by 25 basis points as widely expected, bringing the federal funds rate range to 5%-5.25% — its highest level since August 2007.
The Fed in its post-meeting statement hinted at a possible pause in hikes ahead. It omitted a sentence present in the previous statement saying that "the Committee anticipates that some additional policy firming may be appropriate" for the Fed to achieve its 2% inflation goal.
China's factory activity fell into contraction for the first time in three months, with the Caixin China purchasing managers' index reading sliding to 49.5.
Stocks in mainland China were mixed after returning from the Labor Day holiday. The Shenzhen Component slid 0.57% to end the session at 11,273.86 and the Shanghai Composite climbed 0.82% to close at 3,350.45.
Hong Kong's Hang Seng index gained 1.29% in its final hour of trade and the Hang Seng Tech index rose 0.54%.
In Australia, the S&P/ASX 200 fell marginally to end at 7,193.1, as the country's trade surplus widened to AU$15.27 billion in March.
South Korea's Kospi closed marginally down at 2,500.94, while the Kosdaq rose 0.22% to 845.06. Japanese markets are closed for a holiday Thursday.
Overnight in the U.S., all three major indexes slid after the Fed decision, extending their losing streak to three days.
— CNBC's Hakyung Kim and Sarah Min contributed to this report
Japanese lenders reluctant to take part in loan for Osaka casino construction: Nikkei
Some Japanese lenders are reluctant to take part in Japan's 550 billion yen ($4.1 billion) syndicated loan to finance the construction of a casino in Osaka after receiving government approval, Nikkei reported.
The report said some of the 20 or so expected to join the effort have "grown more skittish" after seeing global casinos shut down after the pandemic as well as growing local worries on gambling addiction and public safety.
MUFG Bank and Sumitomo Mitsui Banking Corp. are serving as lead arrangers for the syndicated loan, Nikkei reported. The two banks are expected to contribute between 200 billion yen and 300 billion yen in funding, the report added.
— Jihye Lee
India's banking system is 'quite resilient,' says State Bank of India
The Indian banking system is quite robust, given a diversified liability structure and loan book amongst other factors, the State Bank of India told CNBC.
"When we look at the liability structure, it's quite diversified and it's more retail which we have in our country. Apart from that, when it comes to loan book also, it is very well diversified," the bank's chairman Dinesh Kumar Khara told CNBC's Chery Kang.
"I would say that Indian banking system is quite resilient," he said adding that India's "regulatory oversight is very, very strict."
Khara added he does not see a contagion effect from the fallout of banks in the U.S. and Europe, noting that many startups in India have started to turn to Indian banks to keep their defaults.
Additionally, SBI foresees a "decent growth" trajectory in their loan book on the back of a growing Indian economy.
"We expect that going forward, we should have almost similar trends in the coming year also for the banking system, because Indian economy is poised for a decent growth," he said.
— Lee Ying Shan
Hong Kong lifts base rate to 5.5% after Fed rate hike
Hong Kong's monetary authority raised its base interest rate to 5.5%, following the U.S. Federal Reserve's moves to raise the Federal Funds rate to 5-5.25% on Thursday.
The city's base rate follows a preset formula, at either 50 basis points above the lower end of the U.S. federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong Interbank Offered Rates, whichever is higher.
The Hong Kong dollar has been pegged to the greenback since 1983, and trades at a tight band of $7.75 to $7.85 Hong Kong dollars per U.S. dollar.
As the average of the five-day moving averages of the overnight and one-month HIBORs is 3.28%, the base rate is therefore set at 5.5%, the HKMA said.
— Lim Hui Jie
Australia trade surplus widens to AU$15.27 billion in March
Australia's trade surplus came in at AU$15.27 billion ($10.2 billion) in March, higher than the AU$14.15 billion recorded in February, government data showed on Thursday.
The reading was higher than expectations of a decline to AU$12.65 billion in March, according to a Reuters poll.
The country's statistics bureau revealed that exports rose 3.8% month on month to A$59.3 billion, driven by metal ores and minerals.
Imports increased 2.5% month on month to AU$44.02 billion, mainly due to non-industrial transport equipment.
— Lim Hui Jie
China's Caixin manufacturing PMI marks first contraction in three months
China's manufacturing activity slipped into contractionary territory for the first time in three months as the Caixin manufacturing purchasing managers' index came in at 49.5 in April, below estimates.
The reading also marks a drop from March's 50.0 level and reflects downsizing in new orders.
"This suggests that China's economic recovery significantly slowed after Covid-19 infections peaked at the start of this year, given that the index stood at 51.6 and 50 in February and March, respectively," Caixin Insight Group's senior economist Wang Zhe said in the release.
Still, businesses were confident that demand will pick up later in the year.
"Manufacturers remained highly optimistic, with the reading for their expectations for future output in April significantly higher than the long-term average, as they expressed strong confidence in market demand recovery and the implementation of relevant supportive policies," Wang said.
— Jihye Lee
China's tourism during Labor Day holiday showed recovery underway
Domestic tourism in China during its Golden Week showed traffic surged 70.8% year-on-year, returning to levels seen before the pandemic, Reuters reported.
Goldman Sachs economists said in a Thursday note, "The strong Labor Day holiday tourism data bode well for consumption and services recovery in coming months, and add conviction to our above-consensus 2023 GDP growth forecast." The firm estimates China's economy to see full-year growth of 6% in 2023.
Chief China economist Xiangrong Yu at Citi said the rise in prices would be worth monitoring closely.
"With supply capacity for certain sectors starting to bind, we tend to think further demand expansion could lead to more hiring and inflationary pressure," he said, noting China's recovery so far has not been inflationary.
HSBC added that there is more to come in the recovery for Chinese travelers.
"We would argue that if you thought the Chinese travel rebound had played out, we believe it is just at the very beginning," they wrote in a Wednesday note.
— Jihye Lee
Asian currencies strengthen after Fed rate decision
Currencies in the Asia-Pacific strengthened against the greenback as the U.S. Federal Reserve signaled a potential end to its rate hiking cycle.
The offshore Chinese yuan strengthened by 0.3% to 6.900 against the greenback on Thursday morning as the dollar index slid 0.24% to 101.102.
The Korean won strengthened 0.6% to 1,326.84 against the greenback, and the Japanese yen strengthened 0.13% to 134.49 against the U.S. dollar. The Australian dollar was flat and the New Zealand dollar also gained by 0.24% to 0.6240 against the greenback.
— Jihye Lee
Bank shares in Australia fall as National Australia Bank earnings miss expectations
Shares of major Australian banks slid on Thursday after National Australia Bank missed earnings expectations in its half year ended March.
Revenue came in at AU$10.53 billion ($7 billion), a 19.3% rise year on year, while net profit stood at AU$3.97 billion, a 11.7% gain from the same period a year ago, NAB said.
NAB's revenue missing estimates by 2% and earnings per share missing estimates by 5.61%, according to Refinitiv data. Net profit meanwhile was 2.31% higher than expectations.
— Lim Hui Jie
China's Caixin manufacturing PMI reading expected to come in expansionary territory
China's Caixin manufacturing purchasing managers index is expected to stay in expansionary territory in April, according to a Reuters poll of economists.
The reading is forecast to rise to 50.3 for the month of April after posting 50.0 in March, the poll showed.
This comes after manufacturing PMI data released by China's National Bureau of Statistics disappointed over the weekend, falling below the 50-mark that separates growth and contraction at 49.2.
— Jihye Lee
Fed hikes rates
The Fed raised rates for a 10th time in this tightening cycle, as was widely expected. The central bank also signaled a pause to the campaign could come.
"In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed said in a statement.
The Fed also removed a sentence from the previous announcement, which said, "The Committee anticipates that some additional policy firming may be appropriate" for the Fed to achieve its 2% inflation goal.
For more, check out CNBC's Fed live blog.
— Fred Imbert, Jeff Cox
Regional bank stocks fall after Powell's remarks
Regional bank stocks turned south again in the last 30 minutes as investors react to Fed Chair Jerome Powell's press conference.
The SPDR S&P Regional Bank ETF (KRE) was down 0.6%.
— Jesse Pound
CNBC Pro: Morgan Stanley's Slimmon says it's dangerous to be too defensive and names top 'offensive' stock picks
Morgan Stanley Investment Management's Andrew Slimmon says it's time to buy some "offensive" stocks.
"So I think it's very dangerous to own just very defensive stocks … I think you want some offensive in your portfolio," Slimmon told CNBC's "Squawk Box Asia" on Tuesday.
He explains why and names stocks to buy.
— Weizhen Tan
CNBC Pro: How to trade Volkswagen and BMW quarterly earnings based on history
Germany's Volkswagen and BMW are set to announce their first-quarter earnings later on Thursday.
Using data from FactSet going back five years, CNBC Pro has assessed how well the automaker's stock performs against benchmark indexes based on different outcomes of their quarterly earnings reports.
— Ganesh Rao
Dollar hits session lows
The dollar index, which tracks the greenback's performance against six other global currencies, fell more than 0.7% to a session low of 101.07 on Wednesday. That was its lowest level since April 16.
The move comes as Fed Chair Jerome Powell answers questions following the central bank's latest policy decision.
— Fred Imbert, Gina Francolla
WTI Crude prices fall to lowest levels since March
WTI Crude (JUN) prices fell 3.07%, hitting a low of $69.46 as of 7:28 a.m. ET Wednesday. This marked WTI Crude's lowest price level since Mar. 27, when it traded as low as $69.13.
WTI Crude is down almost 9.5% week to date, on pace for its worst week since Mar. 17, when it lost almost 13%.
The Energy Select Sector SPDR Fund (XLE) is down 6.6% week to date, putting it on pace for its worst week since Mar. 17, when it lost 6.85%. Energy groups Halliburton and Exxon Mobil have lost 10.4% and 8.4% this week, respectively.
— Hakyung Kim, Gina Francolla