Spot gold prices increased to a new high on Thursday following the U.S. Federal Reserve’s decision to maintain its benchmark rate at a target range of 3.5% to 3.75%. The bullion increased by over 3%, surpassing the $5,500 per ounce threshold for the first time. Markets in the Asia-Pacific region experienced a general upward trend on Thursday. Australia’s S&P/ASX 200 experienced a slight decrease of 0.07%, concluding the trading session at 8,927.5. Japan’s Nikkei 225 reversed earlier losses to close slightly above the flatline at 53,358.71, while the Topix increased by 0.28% to 3,545.3. South Korea’s Kospi increased by 0.98%, concluding the trading day at 5,221.25, while the small-cap Kosdaq experienced a rise of 2.73%, reaching 1,164.41.

Samsung Electronics experienced an initial increase of 2.58% at the market’s opening on Thursday, only to subsequently decline, closing 1.05% lower. The company announced a more than threefold increase in fourth-quarter profits on Thursday, achieving a new record and surpassing estimates, driven by a shortage of memory chips and robust demand for artificial intelligence servers. The Hong Kong Hang Seng Index experienced an increase of 0.41% amid volatile trading conditions, whereas the mainland’s CSI 300 concluded the trading session with a gain of 0.76%, finishing at 4,753.87. Investors monitored the situation in Indonesia as the benchmark Jakarta Composite experienced a decline exceeding 8% on Wednesday, prompted by a statement from index provider MSCI indicating a possible downgrade of the nation to frontier-market status. Trading was suspended following an 8% decline in the benchmark on Thursday, as stated, while the Indonesian rupiah experienced a slight depreciation to 16,778 against the US dollar. The index reduced its losses and was most recently trading 1.2% lower.

Goldman Sachs has downgraded Indonesia to underweight, citing expectations of continued passive selling, according to a note released on Thursday by the investment bank. The bank’s strategists characterized this development as “an overhang that will impede market performance.” Singapore’s central bank maintained its monetary policy on Thursday, cautioning about potential upward pressures on inflation and demand as the economic outlook for the city-state remains robust. The country’s benchmark Straits Times Index experienced a modest increase of 0.24%.  Overnight in the U.S., the S&P 500 achieved a significant milestone, reaching 7,000 for the first time, before experiencing a pullback as the Federal Reserve maintained interest rates and revised its economic growth outlook upward.

The broad market index concluded the trading session with a marginal decline of 0.01%, settling at 6,978.03. Earlier, the S&P 500 experienced an increase of 0.3% for the day, reaching an unprecedented intraday peak of 7,002.28. The Dow Jones Industrial Average increased by 0.02%, finishing at 49,015.60. The Nasdaq Composite exhibited superior performance, increasing by 0.17% to close at 23,857.45. Treasury yields increased in response to the Federal Reserve’s decision, as the central bank’s statement indicated that economic activity is “expanding at a solid pace” and that the unemployment rate has “shown some signs of stabilization.” Fed Chair Jerome Powell stated “I think, and many of my colleagues think, it’s hard to look at the incoming data and say the policy is significantly restrictive at this time.”