Beijing: Thursday's gains on Asian stock markets were largely driven by the Federal Reserve's decision to increase its key lending rate once more in an effort to curb inflation while also expressing uncertainty about possible future moves. While Seoul and Sydney regressed, Shanghai and Hong Kong advanced. Markets in Japan were closed due to a holiday.

After the Fed announced a 0.25 percentage point increase in its lending rate on Wednesday, Wall Street's benchmark S&P 500 index dropped by 0.7%. In its statement, the Fed dropped a mention of "additional policy firming" but refrained from calling for an end to rate hikes. The main finding, in my opinion, is that the cycle of rate hikes has likely reached its conclusion or is very close to it, according to a report by Kristina Hooper of Invesco.

In Shanghai, the Shanghai Composite Index increased by 0.6% to 3,341.73, and in Hong Kong, the Hang Seng increased by 1% to 19,899.02.
 Seoul's Kospi decreased by 0.2% to 2,495.40, and Sydney's S&P-ASX 200 decreased by 0.1% to 7,187.20.

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The Indian Sensex began trading up 0.2% at 61,300.29. The markets in New Zealand and Southeast Asia expanded.The S&P 500 dropped to 4,090.75 on Wall Street. The Dow Jones Industrial Average fell 0.8% to 33,414.24 and the Nasdaq composite fell 0.5% to 12,025.33 respectively. 

This year, as the Fed and other central banks in Europe and Asia work to quell inflation that was approaching multi-decade highs, traders anticipate a recession in the United States. 

Following three prominent bank failures in the United States and one in Switzerland that were attributed to stress from rising interest rates, jitters have gotten worse. Central banks have pledged actions, such as additional lending if necessary, in an effort to reassure investors.

Investors anticipate that the Fed will start lowering interest rates this year to support the economy's sluggish growth. Fed Chair Jerome Powell stated on Thursday that he does not anticipate rate reductions anytime soon.

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Traders are concerned that industry unrest may lead banks to cut back on lending, putting even more downward pressure on economic activity. Powell mentioned a study that won't be made public but will reveal how much bank loan officers claim to be tightening lending standards.

A day after trading was suspended due to sharp price declines, shares of rivals PacWest Bancorp, Western Alliance Bancorp, and other companies fell once more. By 4.4%, Western Alliance decreased.

After rising earlier in the day, PacWest fell 2%, but it fell another 52.5% in after-hours trading. It and other lenders with a similar business model have sizable amounts of uninsured deposits (those over $250,000), which have increased in liability as depositors have demonstrated a willingness to withdraw their funds at the first sign of trouble.

The banks are also exposed to low-interest loans that were approved when interest rates were much lower but are now worth less on the open market. Eli Lilly, on the other hand, saw a 6.7% increase after a study of a treatment for Alzheimer's disease showed encouraging results. After exceeding analysts' expectations for profit and revenue, Kraft Heinz gained 2%.

The majority of American companies' profits during the most recent reporting season were better than anticipated, but declines are still anticipated. Even though Advanced Micro Devices reported higher-than-expected profit and revenue, the company fell 9.2%. It provided a revenue projection for the current quarter that was below some analysts' predictions.

According to a report released on Wednesday, the job market may be in better shape than anticipated. According to ADP, private sector hiring increased significantly more than anticipated last month. That might increase anticipation for the federal government's Friday hiring report.

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On the New York Mercantile Exchange's electronic trading platform, benchmark U.S. crude increased by 40 cents to $69 per barrel in the energy sector. On Wednesday, the contract fell $3.06 to $68.60. The benchmark price for international oil trading, Brent crude, increased by 60 cents to $72.93 per barrel in London. The previous session saw a $2.99 decrease to $72.33.