Asia-Pacific markets were mixed in early Thursday trading as investors weighed signs of easing tensions in the Middle East and comments from United States Federal Reserve officials.
By 11:10 am AEST (1:10 am GMT), Australia’s S&P/ASX 200 dipped 0.1%, while Japan’s Nikkei 225 rose 0.9%, and South Korea’s Kospi 200 fell by 0.9%.
The uneven performance followed a subdued session on Wall Street overnight. The Dow Jones Industrial Average fell 0.3%, the S&P 500 ended flat, and the Nasdaq Composite edged up 0.3%.
Federal Reserve Chair Jerome Powell continued his testimony on Capitol Hill, reiterating a cautious approach to monetary policy. Powell stated that the central bank could consider rate cuts if recent inflationary effects - particularly those tied to tariffs - prove temporary.
However, he declined to set a timeline for any policy easing, despite ongoing pressure from President Donald Trump for rate reductions.
Echoing Powell's tone, Boston Fed President Susan Collins, a voting member, warned of early signs of tariff-driven inflation. “Labour market conditions point to a modest deceleration in activity, but are generally healthy: unemployment is low, layoff indicators are around pre-pandemic levels, and job gains - while moderating - are close to their trend pace,” she said.
Commodities were broadly higher. Brent crude rose 0.4% to US$66.43 per barrel, while spot gold climbed 0.3% to US$3,332.40 an ounce.
Chinese equities continued their rally, notching a third consecutive day of gains. The Shanghai Composite rose 1% to 3,456.0, while the CSI 300 advanced 1.4% to 3,960.1.
Hong Kong’s Hang Seng Index gained 1.2% to 24,474.7, and India’s BSE Sensex added 0.9% to 82,755.5.
In contrast, European markets ended lower. The FTSE 100 slipped 0.5% to 8,718.8, Germany’s DAX declined 0.6% to 23,498.3, and France’s CAC 40 dropped 0.8% to 7,558.2.
