Fed minutes, Bank of Korea decision, Sri Lanka

A woman and a child ride a bicycle past street market stalls in Seoul on October 1, 2021.

Anthony Wallace | AFP | Getty Images

Markets in the Asia-Pacific traded higher than the US Federal Reserve said they expect to switch to smaller rate hikes “soon,” according to minutes released on Wednesday.

The Bank of Korea opted for a smaller 25 basis point hike, widely in line with expectations. The Kospi rose 0.56% and the Korean won slightly strengthened against the US dollar to stand at 1,338.8 as the decision was announced.

The S&P/ASX 200 in Australia rose 0.35% after stocks on Wall Street rose mildly following the Fed minutes release. Tea Nikkei 225 rose 1.34% and the Topix also traded 1.29% higher.

Reports of mass protests at Chinese iPhone supplier Foxconn’s factory showed rare signs of dissent in the region of Zhengzhou city, as the country grapples with prolonged Covid restrictions.

Overnight in the US, stocks closed higher for a second day on hopes the central bank is seeing progress in its tight to tackle high inflation. Markets stateside are closed on Thursday for the Thanksgiving holiday and will close early on Friday.

– CNBC’s Carmen Reinicke and Sarah Min contributed to this report

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