Shibuya Crossing, known as the busiest crosswalk in the world
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Markets in the Asia-Pacific region gave up earlier gains and traded mostly lower on Thursday after the U.S. Federal Reserve cut interest rates for the third time this year.
The U.S. central bank cut the federal funds rate by 25 basis points to 3.5% to 3.75%, signaling that easing is complete for the time being.
Fed Chairman Jerome Powell said in a press conference after the board meeting that the latest rate cut puts the Fed in a comfortable position on interest rates.
“We are in a position to wait and see how the economy develops,” Powell said, noting that President Donald Trump’s tariffs have accelerated inflation.
The U.S. dollar index fell to 98.54 on Thursday, its lowest since Oct. 21.
Japanese Nikkei Stock Average The stock started the day in positive territory, but fell 0.9% to close at 50,148.82. TOPIX also fell 0.94% to 3,357.24.
Korean Kospi The index also reversed and fell 0.59% to end at 4,110.6, marking the third consecutive day of decline. The small-cap Kosdaq closed just below the flatline at 934.64.
Hong Kong Hang Seng Index Although the index fell slightly in the last hour of trading, mainland China’s CSI300 index fell 0.86% to end at 4,552.18, also its third consecutive loss.
Shares in Shenzhen’s ZTE fell 10% after Reuters reported that the Chinese telecommunications equipment maker may have to pay more than $1 billion to the U.S. government to resolve foreign bribery allegations.
australian S&P/ASX 200 It rose 0.15% to end the day at 8,592.
In addition to Wednesday’s interest rate decision, the Fed announced it would resume purchasing $40 billion in Treasury bills starting Friday. As a result, short-term government bond yields fell.
The central bank also mentioned weakness in the labor market in its statement, removing the phrase “remaining at a low level.” This suggests that the country’s focus is shifting from inflation to supporting the economy.
One night in America Dow Jones Industrial Average It rose 1.1% on Wednesday after the Fed’s decision. S&P500 0.7% are ahead; Nasdaq Composite Increased by 0.3%.
—CNBC’s Jeff Cox, Sean Conlon and Pia Singh contributed to this report.
