Chinese Stocks Open Higher as US Fed Puts Interest Rate Hikes on Hold
Tang Shihua
/SOURCE : yicai

 (Yicai  Global) Jan. 31 -- China's stock markets opened higher this morning  after the US Federal Reserve kept its benchmark interest rate unchanged  and called for patience on further tightening of its monetary policy.  Better purchasing managers' index data in China also boosted the  market.    

The  Shanghai Composite Index opened 0.22 percent higher at 2,581.33 points  while the Shenzhen Component Index increased 0.21 percent to 7,485.79.  The ChiNext Price Index, which tracks growth enterprises in Shenzhen,  edged up 0.01 percent to 1231.00.

China's  manufacturing and non-manufacturing PMIs recovered for the month  compared to December, indicating better overall economic conditions,  according to the National Bureau of Statistics.

The  US Federal Reserve Open Market Committee is pausing interest rate hikes  and holding the target range of its benchmark rates in the current band  of 2.25 percent to 2.5 percent following its January meeting. The  committee also said it will be patient as it determines future interest  rate increases.

US  stocks gained on the news with the S&P 500 up 1.55 percent, the Dow  Jones rising 1.77 percent and the Nasdaq increasing 2.17 percent.

Japan's Nikkei Stock Average was up 0.89 percent while Hong Kong's Hang Seng index was up 1.01percent at one point this morning.

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Keywords: Stock markets , Shanghai Composite Index , Shenzhen Component Index , ChiNext Price Index