admin Asian markets showed mixed reactions on Thursday following the US Federal Reserve’s significant interest rate cut. The Fed lowered its benchmark policy rate by 50 basis points, bringing it down to a range of 4.75% to 5%. This decision caused varied outcomes across Asian stock markets, with Japan and Singapore seeing gains while others faced challenges.
In Singapore, the Straits Times Index rose 0.47% as of mid-morning trading. Meanwhile, Japan’s Nikkei index surged by more than 2%, reaching 37,133.34. Export-heavy stocks like Fast Retailing and SoftBank Group contributed significantly to this rise. Additionally, the automakers’ sector in Japan saw strong gains, with Toyota Motor jumping 4.9%.
However, not all markets responded positively. The MSCI’s broadest Asia-Pacific index outside Japan fell by 0.4%. South Korean markets, reopening after holidays, were pressured by heavy losses in the chipmaking sector. A downbeat note from Morgan Stanley contributed to SK Hynix shares tumbling 9.6% and Samsung declining 2.6%. The Kospi Index dropped 0.92% in early trading.
China’s major indices, including the CSI300 and Shanghai Composite, both dipped by 0.5%. Investor concerns over the country’s economic recovery overshadowed the potential benefits of the Fed’s rate cut. Although the rate cut opens doors for China to ease its own policies, uncertainties surrounding its domestic economy remain.
Meanwhile, Hong Kong’s stock market stayed relatively flat, though mainland property stocks rose by 2.3%. The Hong Kong Monetary Authority followed the US Fed by cutting its base rate by 50 basis points to 5.25%, maintaining its currency peg to the US dollar.
Though the Fed’s rate cut is generally positive for emerging markets, China’s domestic policies and economic outlook play a more critical role in shaping market sentiment. Investors remain cautious due to unpredictable macroeconomic factors.
Magazine 
