Asian markets with strong policy support stand to gain as Fed defies Trump’s demand to cut rates

[SINGAPORE] The US Federal Reserve’s decision to defy President Donald Trump’s demands by keeping interest rates unchanged for the fifth straight time was broadly in line with market expectations.

But analysts say that Asian markets with strong policy support may fare better in weathering a storm of uncertainties whipped up by factors such as elevated US yields and a resilient greenback.

Most Asian markets were in the red on Thursday (Jul 31), following the Fed’s decision to hold interest rates steady. Despite Trump’s relentless pressure, the US central bank kept the benchmark rate at between 4.25 per cent and 4.5 per cent on Wednesday.