Asia-Pacific markets experienced mixed trading on Thursday after both the U.S. Federal Reserve and China’s central bank decided to maintain their benchmark interest rates.

Australia’s S&P/ASX 200 rose by 1.02%, while South Korea’s Kospi gained 0.28%, and the small-cap Kosdaq increased by 0.55%. However, Hong Kong’s Hang Seng Index fell 1.36%, and mainland China’s CSI 300 dropped 0.17% as Beijing focused on balancing economic growth and currency stability amid rising trade tensions.

The People’s Bank of China kept its one-year loan prime rate at 3.1% and the 10-year LPR at 3.6%, following a quarter-percentage-point cut in October. Meanwhile, the U.S. Federal Reserve held rates steady at 4.25% to 4.5% but signaled potential rate cuts later in the year.

Fed Chair Jerome Powell noted that while a recession is possible, a severe downturn is unlikely. U.S. stock futures remained flat after the three major indexes rallied, with the S&P 500 recovering from recent losses.