Fed rates up, Asian markets up

As expected, the Federal Open Market Committee (FOMC) yesterday raised its target for the federal funds rate by 25 basis points to 2.5 percent. In its statement, the FOMC continues to say that "policy accommodation can be removed at a pace that is likely to be measured".

This move has been widely discounted and should not affect stock markets. US markets rose marginally yesterday.

Earlier yesterday, Asian markets had also risen. Markets in Australia and Indonesia hit new highs while Tokyo closed at a two-week high.

In Singapore, stocks closed at a four-year high with the Straits Times Index rising 0.7 percent to close at 2,108.69. The rise was not broad-based though, as decliners outnumbered advancers 244 to 182.