Asia-Pacific markets were mixed on Thursday, as investors reacted to comments from United States Federal Reserve Chair Jerome Powell, who suggested that a further rate cut in December was far from a “foregone conclusion”.
The cautious stance from the Fed tempered optimism following recent market rallies, adding uncertainty to global risk sentiment.
Meanwhile, in Seoul, chief policy adviser Kim Yong-beom reportedly outlined details of a new trade deal with Washington. While U.S. officials have yet to confirm the specifics, Kim told The Korea Herald the agreement involves a US$350 billion investment pledge, consisting of $200 billion in cash instalments and $150 billion allocated to shipbuilding industry cooperation, with an annual cap of $20 billion.
“As the investments will be made in line with business progress within an annual limit of $20 billion, they will remain within a range the Korean foreign exchange market can absorb, thereby minimising any impact on the market,” Kim said.
President Donald Trump is expected to meet Chinese President Xi Jinping at 1 pm AEDT (2 am GMT), with investors eyeing further details on trade and currency coordination between the two largest economies.
By 11:50 a.m. AEDT (12:50 a.m. GMT), Australia’s S&P/ASX 200 was down 0.2%, while Japan’s Nikkei 225 slipped 0.2%. South Korea’s Kospi 200 advanced 1.1% to a record high, supported by optimism around the newly announced investment agreement.
In economic data, figures from the Australian Bureau of Statistics (ABS) Australia’s quarterly export price index fell 0.9% but edged up 0.1% on an annual basis.
The decline was led by a 5.2% fall in the “Gas, natural and manufactured” category, as oil-indexed contracts followed weaker crude prices during the quarter.
The “Gold, non-monetary” category rose 3.2%, supported by sustained demand for gold as a safe-haven asset amid ongoing geopolitical and economic uncertainty. The report noted that central bank purchases had moderated, easing the pace of demand growth.
The import price index dropped 0.4% for the quarter and 2.3% year-on-year, driven by a 3.4% decline in telecommunications equipment.
The ABS said the drop reflected lower import prices for existing models and the appreciation of the Australian dollar against the U.S. dollar.
On Wall Street, major U.S. benchmarks posted a mixed performance on Wednesday. The Dow Jones Industrial Average slipped 0.2%, the S&P 500 was flat, and the Nasdaq Composite rose 0.6% to a fresh record close.
In commodities, Brent crude gained 0.3% to settle at US$64.22 per barrel, while spot gold lost 0.6% to trade near multi-week lows of US$3,930.62 per ounce.
Across Asia on Wednesday, China’s Shanghai Composite added 0.7% to a 10-year high of 4,016.3, while the CSI 300 climbed 1.2% to 4,747.8.
Hong Kong’s Hang Seng Index slipped 0.3% to 26,346.1, and India’s BSE Sensex rose 0.4% to 84,997.1.
In Europe, markets finished in a mixed fashion on Wednesday. The FTSE 100 extended its winning streak to an eighth consecutive session, up 0.6% to a record 9,756.1. Germany’s DAX fell 0.6% to 24,124.2, while France’s CAC 40 eased 0.2% to 8,200.9.
