Asian stock markets experienced mixed trading on Thursday as investors reacted to recent developments from Wall Street, where indexes fluctuated between gains and losses but remained near record highs following the Federal Reserve’s decision to cut its main interest rate. U.S. futures showed an upward trend, while oil prices recorded a decline.
In Japan, the Nikkei 225 climbed 1.3% to reach 45,362.70, benefiting from the performance of technology stocks such as Disco, Tokyo Electron, and SoftBank. The Bank of Japan began a two-day policy meeting, with expectations that rates would remain unchanged.
South Korea’s Kospi index increased nearly 1.2% to 3,455.06, buoyed by gains in semiconductor companies like SK Hynix and Samsung Electronics. Conversely, Chinese markets experienced a downturn, with Hong Kong’s Hang Seng slipping 0.2% to 26,856.02 and the Shanghai Composite losing 0.6% to 3,853.74 after initially gaining.
Australia’s S&P/ASX 200 fell by 0.7% to 8,755.70, following the release of unemployment data that showed a steady jobless rate of 4.2% in August, despite a decrease in overall employment by 5,400 and a significant decline of 40,900 in full-time jobs. Meanwhile, India’s BSE Sensex posted a 0.4% increase and Taiwan’s Taiex added 1.1% to its score.
In the previous day’s trading on Wall Street, the S&P 500 fell by 0.1% but remained close to its all-time high recorded earlier in the week. The Dow Jones Industrial Average saw a gain of 260 points, or 0.6%, while the Nasdaq composite experienced a slight decrease of 0.3%. These fluctuations followed the Federal Reserve’s first interest rate cut of the year, a widely anticipated move that prompted varying responses in the markets.
The Fed’s release of projections indicated that officials expect further rate cuts, with expectations of two more cuts by the end of this year and an additional one in 2026. This caused initial optimism among stocks, as the projections aligned with expectations for economic stimulation through interest rate reductions. However, gains were subsequently tempered after Fed Chair Jerome Powell cautioned that the projections were not guarantees and warned that economic conditions could shift rapidly.
The Federal Reserve faces challenges in balancing a slowing job market with persistently high inflation. While tasked with managing both issues, the Fed has only one tool—interest rate adjustments—which can have conflicting short-term effects. The central bank had maintained steady rates this year due to concerns about U.S. tariffs under then-President Donald Trump, which pose risks to consumer prices. Officials predict it will take several years for inflation to drop below the Fed’s 2% target.
In commodity trading, benchmark U.S. crude oil dropped 10 cents to $63.95 per barrel, while Brent crude also declined by the same amount to $67.85 per barrel. The U.S. dollar strengthened against the Japanese yen, rising to 147.51 from 146.89. Meanwhile, the euro slipped to $1.1781, down from $1.1818.
