Investing.com – Asian stocks were down on Thursday morning, after the U.S. Federal Reserve painted a grim picture of the U.S. recovery from the COVID-19 virus on Wednesday as it wrapped up its policy meeting.
Its quarterly predictions pointed to a long road towards recovery, with GDP forecast to contract by 6.5% in 2020 and unemployment to fall to 9.3% in the final three months of the year from May’s 13.3%.
Down Under, the ASX 200 slid 2.19%.
Hong Kong’s Hang Seng Index fell 0.39%. Meanwhile, China’s NetEase (HK:9999) made a soaring debut into the Hong Kong market, with shares rising to above 9% of their issue price on the first day of trading.
The Fed also decided during the meeting to hold its policy benchmark near zero, with official forecasts largely predicting it to stay there through 2022.
Chair Jerome Powell told a video conference on Wednesday that “we’re not even thinking about thinking about raising rates.”