Global Stocks Higher After Fed Hike

TOKYO (AP) -- Global stocks posted broad gains Thursday after the Federal Reserve ended protracted uncertainty by raising interest rates for the first time in nearly a decade and signaling that further increases will be gradual.

KEEPING SCORE: France's CAC 40 surged 2.4 percent to 4,734.78 in early trading and Germany's DAX added 2.5 percent to 10,729.33. Britain's FTSE 100 rose 1.5 percent to 6,153.11. Wall Street was set for gains. Dow futures rose 0.2 percent to 17,689. S&P 500 futures added 0.1 percent to 2,066.10.

FED, FINALLY: The Federal Reserve raised its main interest rate by a quarter of a point, a move that was widely anticipated in the markets. That rate had been near zero for seven years to foster an economic recovery after the U.S. mortgage crisis that sparked a global recession. The rate hike was a long-expected vote of confidence in the U.S. economy, which is the world's biggest and a crucial market for exporters in trade-reliant Asia. At the same time investors were encouraged that the Fed emphasized that further increases will be gradual.

THE QUOTE: The rate hike "signals confidence in the ongoing recovery in the U.S. economy after the Great Financial Crisis," said Shane Oliver, head of investment strategy at AMP Capital. "Given ongoing deflationary risks and slow global growth, future Fed hikes are likely to be cautious and gradual," he said a report. "Global shares are likely to resume their rising trend but with U.S. shares as a relative underperformer. Bond yields are likely to remain low which should be positive for real assets."

ASIA'S DAY: Japan's Nikkei 225 jumped 1.6 percent to 19,353.56 and Hong Kong's Hang Seng rose 0.8 percent to 21,872.06. South Korea's Kospi added 0.4 percent to 1,977.96. Australia's S&P/ASX 200 advanced 1.5 percent to 5,102.00. China's Shanghai Composite gained 1.8 percent to 3,580.00. Benchmarks in Taiwan, New Zealand and Southeast Asia also rose. The dollar gained against Asian currencies. It was up 0.5 percent against the Korean won and gained 0.2 percent versus the Indian rupee and Indonesia rupiah.

ENERGY: Benchmark U.S. crude was down 40 cents at $35.12 a barrel in electronic trading on the New York Mercantile Exchange. The futures contract dropped $1.83, or 4.9 percent, to close at $35.52 in New York on Wednesday. Brent crude, a benchmark for international oils, was down 39 cents at $37.00 a barrel in London.

MAJOR CURRENCIES: The euro fell to $ 1.0863 from $1.0884 on Wednesday. The dollar dropped to 122.36 yen from 122.41 yen.

(KA)