Asia-Pacific equities were mixed on Thursday as investors weighed the Federal Reserve’s widely expected rate cut alongside key regional economic data.
Fed Chair Jerome Powell framed the quarter-point reduction as a “risk management cut”, signalling caution rather than a decisive pivot toward aggressive easing.
By 11:10 am AEST (1:10 am GMT), Australia’s S&P/ASX 200 had slipped 0.8%, while Japan’s Nikkei 225 added 0.6% to fresh record highs. South Korea’s Kospi 200 gained 0.7%.
In Australia, the unemployment rate held steady at 4.2% in August, according to data from the Australian Bureau of Statistics, in line with market expectations.
By contrast, New Zealand’s economy contracted more than expected, raising the likelihood of further policy easing. GDP shrank 0.9% in the June quarter, leaving output 1.1% lower than a year earlier according to figures released by Stats NZ. Markets had forecast a 0.3% quarterly decline.
Growth for the prior quarter was revised slightly higher to 0.9%.
Japan’s Cabinet Office reported that core machinery orders, excluding volatile items, fell 4.6% month-on-month, a sharper drop than the 1.7% decline markets had expected.
Meanwhile, the Bank of Japan began its two-day policy meeting, with policymakers expected to maintain current interest rate settings.
Overnight in the United States, the Dow Jones Industrial Average rose 0.6% to fresh intraday highs, while the S&P 500 slipped 0.1% and the Nasdaq Composite lost 0.3%.
Commodity markets softened, with Brent crude declining 0.8% to US$67.95 per barrel. Spot gold retreated 0.8% to settle at US$3,659.98 per ounce, after earlier hitting a record high of US$3,707.56.
Elsewhere, Chinese equities extended gains, with the Shanghai Composite rising 0.4% to 3,876.3 and the CSI 300 up 0.6% to 4,551.0.
Hong Kong’s Hang Seng Index climbed 1.8% to 26,908.4, the highest close since July 2021, while India’s BSE Sensex advanced 0.4% to an eight-week peak of 82,693.7.
In Europe, markets ended Wednesday mixed. London’s FTSE 100 edged 0.1% higher to 9,208.4, Frankfurt’s DAX gained 0.1% to 23,359.2, while Paris’s CAC 40 eased 0.4% to 7,787.0.
