Asian stocks in Thursday's session traded on a cautious note after the US Federal Reserve held its key rate steady and reiterated that it isn't in a hurry to lower rates. The US central bank flagged the risks of higher unemployment and higher inflation, further obscuring the economic outlook.

Following President Donald Trump's announcement of a slew of tariffs last month, Fed officials have stated that they are comfortable maintaining rates at their current level until they have a better idea of the direction of the economy.

“Absent a decisive turn in the US economic data, the FOMC seems comfortable remaining on hold indefinitely,” said James Egelhof, chief US economist for BNP Paribas, mentioning the Federal Open Market Committee. 

Meanwhile, investors also remained on the sidelines awaiting trade talks between the US and China. 

The key MSCI Asia ex Japan index traded with gains of over 0.5 per cent.

At the last count, Asian markets traded mixed with Hong Kong's Hang Seng leading the gains, up over 1 per cent. Meanwhile, Japan's Nikkei and South Korea's Kospi traded with modest gains, while Singapore's Straits Times saw a marginal drag.

ve kept its key interest rate unchanged Wednesday (May 7), brushing off President Donald Trump’s demands to lower borrowing costs, and said that the risks of higher unemployment and higher inflation have risen

Asian markets in Thursday's session 

On Wednesday (May 7), the US Federal Reserve kept its key policy rate steady even as President Donald Trump wanted the Fed to lower borrowing costs. 

despite weeks of harsh criticism and demands from President Donald Trump that the Fed reduce borrowing costs.

kept its key interest rate unchanged Wednesday (May 7), brushing off President Donald Trump’s demands to lower borrowing costs, and said that the risks of higher unemployment and higher inflation have risen.