Asia-Pacific markets mostly higher after U.S. Federal Reserve keeps rates unchanged

As the world adjusts to a "global risk recalibration", private credit is leveraging on that volatility which is now a "persistent feature of the market", Diane Raposio, head of Asia Markets and Credit at investment firm KKR, told CNBC's "Squawk Box Asia" Thursday.

"We use that as a time to rotate our public credit portfolios, both globally and in Asia. And we also use that opportunity on the private credit side to be talking to corporates. They need flexible capital," she said.

She pointed out factors driving optimism specifically in Asia, where the firm has been operating for 20 years, including a supply and demand gap and the muted impact of tariffs on Asia's growth.

"Less than 5% of all capital has been raised for private credit, so you've got a huge amount of demand and very little flexible capital today. So that's what's really driving the large supply and demand gap," Raposio noted.

- Diane Jorolan, Neha Hegde

Tensions between India and Pakistan are rising, with Chinese defense stocks surging after Pakistan's apparent use of China-made weapons to down Indian jets.

Pakistan's Foreign Minister Ishaq Dar claimed on Wednesday that Pakistan deployed Chinese-made J-10C fighter jets in a clash with India's air force, according to local state media.

AVIC, through its subsidiary AVIC Chengdu Aircraft, manufactures the J-10C fighter jets reportedly used by Pakistan in the recent conflict. Another subsidiary, AVIC Aerospace, which produces military aircraft and helicopters, saw its Hong Kong-listed shares rising over 6%.

And Shenzhen-listed stocks of AVIC Chengdu Aircraft surged as much as over 16%. It last traded 8.31% higher at 11.40 a.m. local time. On Wednesday, its stocks rose 17.05%, marking the most significant gain since last October.

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—Lee Ying Shan

Shares of Chinese bubble-tea brand Auntea Jenny rose as much as 75% in its Hong Kong trading debut.

The shares saw strong demand from retail investors in Hong Kong, with the allocation oversubscribed by over 3,616 times.

The shares hit a high of HK$197.60, which is 74.7% higher than the offer price of HK$113.12. Meanwhile, the Hang Seng Index rose 1.1%.

The Shanghai-based company raised HK$272.8 million (about US$35 million) in gross proceeds by issuing 2.4 million shares, filings showed.

—Lee Ying Shan, Lim Hui Jie

India's IPO numbers are strong despite perceptions of an IPO drought, Ashishkumar Chauhan, MD & CEO of the National Stock Exchange of India told CNBC's "Inside India" Thursday.

The country saw more than 268 IPOs last year, he said.

"India is a very vibrant capital markets with huge amount of growth. And that's where when you look at 268 IPOs ... We may think it's a drought, but overall, any country will give an arm and a leg for that kind of numbers on IPO," he added.

He attributed the Indian economy's resilience to its tech sector and young population that keeps consumption demand high.

Last week, India's electric two-wheeler player Ather Energy's $352 million IPO making it the country's third largest this year.

He added that there are more companies in the IPO pipeline.

- Amanda Yeo, Neha Hegde

The Philippine economy expanded 5.4% year on year in the first quarter of 2025, up from the 5.3% climb in the previous quarter.

The latest reading missed the expectation of a 5.7% expansion compiled in a poll by Reuters.

The country said the main contributors to growth were sectors including manufacturing, financial and insurance activities, as well as wholesale and retail trade.

— Lim Hui Jie

The People's Bank of China has lowered the borrowing cost of its seven-day reverse repurchase agreements by 10 basis points Thursday, following through Beijing's monetary easing measures announced the day before.

The central bank carried out a reverse repurchase operation of 158.6 billion yuan ($21.9 billion) at a fixed rate of 1.4%, compared to 1.5% previously, according to a statement.

The reduction of the seven-day reverse repo rate, which serves as the country's main policy rate, could lead to similar cuts in other market rates.

— Anniek Bao

South Korean electronics giant LG Electronics reportedly announced that it will build a $600 million factory in India.

The facility will be LG's third production base in India, and will begin production by the end of 2026, South Korean media outlet Yonhap reported.

It will be able to produce 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners and 2 million air conditioner compressors a year.

Shares of LG Electronics were down 0.28% on Thursday.

— Lim Hui Jie

Fed Chair Jerome Powell acknowledged rising headwinds to the central bank's dual mandate on Wednesday.  

"My gut tells me that uncertainty about the economy is extremely elevated. The downside risks have increased," Powell told reporters. 

However, he added, "The risks of higher unemployment and higher inflation have risen, but they haven't materialized yet. … And that tells me more than my intuition," reiterating the Fed's decision to keep interest rates unchanged.

— Hakyung Kim

Major U.S. indexes closed Wednesday in the green, capping a volatile session for stocks as investors digested updates from the Federal Reserve and new developments on trade.

The S&P 500 added 0.43% to finish the session at 5,631.26, while the tech-heavy Nasdaq Composite gained 0.27% to end at 17,738.16. The Dow Jones Industrial Average gained 284.97 points, or 0.7%, to close at 41,113.97.

— Pia Singh

President Donald Trump told reporters Wednesday that he would not lower tariffs on China as a condition to begin trade negotiations. Members of Trump's team are set to meet with Chinese officials in Switzerland this weekend to discuss trade matters.

The U.S. president also indicated that fentanyl was still a key issue in any potential discussions.

"They have to stop fentanyl from coming in. That'll be a very big part," Trump said.

— Jesse Pound, Laya Neelakandan