{"id":106130,"date":"2024-09-19T09:45:51","date_gmt":"2024-09-19T05:45:51","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=106130"},"modified":"2024-09-19T09:45:53","modified_gmt":"2024-09-19T05:45:53","slug":"asian-stocks-rise-after-feds-rate-cut-japan-leads-gains-as-yen-weakens","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/asian-stocks-rise-after-feds-rate-cut-japan-leads-gains-as-yen-weakens\/09\/19\/market-updates\/","title":{"rendered":"Asian Stocks Rise After Fed’s Rate Cut, Japan Leads Gains as Yen Weakens"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Asian stocks experienced gains in choppy trade on Thursday, spurred by optimism following an outsized 50 basis point rate cut by the Federal Reserve<\/strong>, though the central bank\u2019s higher projection for neutral rates tempered the enthusiasm. Wall Street’s weak overnight close also weighed on sentiment. However, U.S. stock index futures saw a sharp rise during Asian trade.<\/p>\n\n\n\n

Japanese Markets Surge on Weaker Yen, BOJ Meeting Anticipation<\/strong><\/h3>\n\n\n\n

Japan’s Nikkei 225<\/strong> and TOPIX<\/strong> indexes were standout performers, rising between 2% and 2.8%<\/strong>, fueled by a weaker yen that fell sharply after the Fed meeting. The yen’s decline was driven by a stronger dollar, while the Bank of Japan\u2019s upcoming meeting on Friday further supported gains in Japanese equities.<\/p>\n\n\n\n

Speculation around the BOJ’s decision, particularly regarding another possible interest rate hike, played a role in the market\u2019s strength. In recent weeks, BOJ officials have made hawkish comments, suggesting an interest rate increase as inflation picks up in Japan. Additionally, Japanese consumer inflation data, due on Friday, is expected to offer more insights into future monetary policy.<\/p>\n\n\n\n

Muted Reaction in Broader Asian Markets<\/strong><\/h3>\n\n\n\n

Elsewhere in Asia, stocks had a more subdued response to the Fed’s decision:<\/p>\n\n\n\n

  • Australia\u2019s ASX 200<\/strong> rose 0.3%<\/strong>, but gains were capped by strong labor market data, which may give the Reserve Bank of Australia more flexibility to maintain higher rates.<\/li>
  • China\u2019s CSI 300<\/strong> and Shanghai Composite<\/strong> indexes climbed 0.5% and 0.4%<\/strong>, respectively, continuing a mild recovery from recent seven-month lows. The Hang Seng<\/strong> index in Hong Kong gained 0.6%<\/strong>.<\/li>
  • South Korea\u2019s KOSPI<\/strong> fell 0.5%<\/strong>, coming off a three-day market break.<\/li>
  • India\u2019s Nifty 50 futures<\/strong> pointed to a positive opening, approaching new record highs.<\/li><\/ul>\n\n\n\n

    The People\u2019s Bank of China<\/strong> is scheduled to decide on its benchmark loan prime rate<\/strong> on Friday, but analysts are not expecting any changes, given the government’s cautious approach to introducing more stimulus.<\/p>\n\n\n\n

    Fed\u2019s Powell Raises Concerns About Long-Term Rate Outlook<\/strong><\/h3>\n\n\n\n

    Federal Reserve Chair Jerome Powell<\/strong> sought to ease concerns about a weakening U.S. economy, stating that risks related to inflation and the labor market are now balanced. However, Powell’s comments about higher neutral rates in the long term and the central bank\u2019s reluctance to return to the ultra-low rates seen during the pandemic have raised questions about how deep the current easing cycle will be.<\/p>\n\n\n\n

    Overall, while the Fed\u2019s aggressive rate cut was welcomed, Powell\u2019s remarks suggested that interest rates might not fall as significantly as some market participants had anticipated. This has tempered investor optimism regarding future rate cuts and growth prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Asian stocks experienced gains in choppy trade on Thursday, spurred by optimism following an outsized 50 basis point rate cut by the Federal Reserve, though the central bank\u2019s higher projection for neutral rates tempered the enthusiasm. Wall Street’s weak overnight close also weighed on sentiment. However, U.S. stock index futures saw a sharp rise during …<\/p>\n","protected":false},"author":9,"featured_media":31994,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,39,36],"tags":[6849,6851],"class_list":["post-106130","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-global-stock-markets","category-market-updates","tag-asia","tag-stocks"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=106130"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106130\/revisions"}],"predecessor-version":[{"id":106131,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106130\/revisions\/106131"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31994"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=106130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=106130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=106130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}