MANILA, Philippines (AP) – Asian shares, particularly in the technology sector, mostly rose on Thursday following a day of fluctuating gains and losses on Wall Street. This movement came in reaction to the Federal Reserve's decision to cut its main interest rate, with Wall Street indexes remaining near record levels.
The Nikkei 225 index in Japan increased by 1.3%, reaching 45,365.98. Several tech stocks, including Disco, Tokyo Electron, and SoftBank, contributed to the gains. The Bank of Japan commenced a two-day policy meeting, during which rates are anticipated to remain unchanged.
In South Korea, the Kospi also advanced by nearly 1.3%, settling at 3,455.98. Major chip manufacturers like SK Hynix and Samsung Electronics were among the stocks driving the positive performance.
The Chinese markets presented a mixed picture. The Hang Seng index in Hong Kong decreased by 0.2%, falling to 26,856.02, while the Shanghai Composite index gained almost 0.5%, reaching 3,893.95, buoyed by optimism over potential trade negotiations with the U.S. and a possible agreement involving TikTok.
In Australia, the S&P/ASX 200 index fell by 0.5% to 8,778.60. Economic data indicated that the unemployment rate remained steady at 4.2% for August, although there was a decline in overall employment by 5,400, with full-time positions dropping by 40,900.
Meanwhile, India's BSE Sensex saw a modest rise of 0.4%, and Taiwan's Taiex increased by 1.1%.
On Wall Street the previous day, the S&P 500 experienced a slight dip of 0.1% but continued to hover near its all-time high set earlier in the week. The Dow Jones Industrial Average enjoyed a gain of 260 points, translating to a 0.6% increase, while the Nasdaq composite waned by 0.3%. These fluctuations followed the Federal Reserve's recent interest rate cut, a move widely expected by the market.
The Fed's announcement included projections indicating that committee members anticipate two additional rate cuts by the end of the year and one more in 2026. This outlook initially prompted stocks to rise, reflecting the market's expectation of further rate reductions, which are viewed as a stimulus for economic growth. However, gains later receded after Fed Chair Jerome Powell emphasized that such projections are not guaranteed and that the economic conditions could shift rapidly.
The Federal Reserve faces challenges as the job market shows signs of slowing while inflation rates remain persistently high. The Fed's dual mandate of fostering maximum employment and price stability means that adjustments in interest rates to aid one objective might adversely affect the other in the short run.
Previously, the Fed maintained stable rates in light of concerns that tariffs imposed by U.S. President Donald Trump could increase product prices. Currently, inflation remains above the Fed's target of 2%, and officials do not foresee it returning to that level for several more years.
In commodity markets, benchmark U.S. crude oil prices slipped by 10 cents to $63.95 per barrel, while Brent crude, the international standard, also fell by 10 cents to $67.85 per barrel. The U.S. dollar appreciated against the Japanese yen, rising to 147.07 from 146.89, whereas the euro decreased to $1.1813 from $1.1818.
AP Business Writer Stan Choe in New York contributed to this report.
