Most Asia-Pacific markets climbed higher on Thursday, following the Federal Reserve’s third rate cut of the year.
The U.S central bank cut the Federal Funds rate by 25 basis points to 3.5%-3.75%, and signalled that it was probably done cutting for now.
Fed Chair Jerome Powell, at his post-meeting news conference, said the reduction puts the Fed in a comfortable position as far as rates go.
“We are well-positioned to wait and see how the economy evolves,” Powell said, and noted President Donald Trump’s tariffs have been a driver of inflation.
Prices of silver rose to a fresh record high of $62.6 per ounce, according to LSEG data, after the Fed rate cut.
The U.S. dollar index fell to a low of 98.54 on Thursday morning, marking its weakest since Oct. 21.
Japan’s Nikkei 225 started the day in positive territory, but later reversed gains and fell 0.11%. The Topix was also down 0.15%.
South Korea’s Kospi rose 0.66%, and the small-cap Kosdaq gained 0.73%.
Hong Kong Hang Seng index gained 0.95%, and the mainland Chinese CSI 300 was up marginally.
Shares of ZTE Corp fell more than 5% after Reuters reported Thursday that the Chinese telecom equipment maker
On Thursday, Reuters reported that Chinese telecom equipment maker ZTE Corp may need to pay more than $1 billion to the U.S. government to settle allegations of foreign bribery.
Australia’s S&P/ASX 200 climbed 0.63%.
In addition to the rate decision Wednesday, the Fed also announced it will resume buying $40 billion in Treasury bills, beginning Friday. Short-term Treasury yields moved lower as a result.
The central bank also addressed the weak labor market in its statement, removing language stating that it “remained low.” This suggests its focus is shifting to supporting the economy, away from inflation.
Overnight in the U.S., the Dow Jones Industrial Average jumped on Wednesday, climbing 1.1% after the Fed decision, while the S&P 500 advanced 0.7% and the Nasdaq Composite increased 0.3%.
— CNBC’s Jeff Cox, Sean Conlon and Pia Singh contributed to this report.
Source: CNBC