Asian Markets Mostly Higher Amid Fed Rate Cut

Asian stock markets are trading mostly higher on Thursday, despite the broadly negative cues from Wall Street overnight, as the markets react to the US Fed’s decision to lower interest rates for the first time in over four years, aggressively slashing rates by half a percentage point. Fed officials also suggested the central bank will cut rates by another 50 basis points by the end of the year. Asian Markets closed mostly higher on Wednesday.

Fed officials also expect to continue lowering rates next year, with the projections indicating rates will be lower by another full percentage point by the end of 2025.

The Australian market is slightly higher on Thursday, extending the gains in the previous five sessions, despite the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,100 level to fresh all-time highs, with gains in iron ore miners, energy and technology stocks, partially offset by losses in gold miner stocks.

The benchmark S&P/ASX 200 Index is gaining 31.10 points or 0.38 percent to 8,173.20, after touching fresh all-time highs of 8,186.90 earlier. The broader All Ordinaries Index is up 32.90 points or 0.39 percent to 8,397.20. Australian stocks ended slightly higher on Wednesday.

Among major miners, BHP Group, Mineral Resources and Rio Tinto are gaining almost 2 percent each, while Fortescue Metals is adding more than 1 percent.

Oil stocks are mostly higher. Origin Energy is gaining almost 2 percent, while Santos and Woodside Energy are edging up 0.3 to 0.5 percent each. Beach energy is edging down 0.3 percent.

In the tech space, Appen is gaining more than 2 percent and Zip is advancing almost 3 percent. Afterpay owner Block, WiseTech Global and Xero are flat.

Among the big four banks, Commonwealth Bank and National Australia Bank are edging up 0.2 percent each, while ANZ Banking and Westpac are adding almost 1 percent each.

Among gold miners, Evolution Mining and Northern Star Resources are losing almost 2 percent each, while Newmont and Gold Road Resources are edging down 0.1 to 0.2 percent each. Resolute Mining is down almost 1 percent.

In the currency market, the Aussie dollar is trading at $0.678 on Thursday.

Extending the gains in the previous session, the Japanese market is sharply higher on Thursday, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving a tad above the 37,300 level, with gains across most sectors led by index heavyweights, financial and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 37,284.43, up 904.26 points or 2.49 percent, after touching a high of 37,394.52 earlier. Japanese shares ended notably higher on Wednesday.

Market heavyweight SoftBank Group is gaining almost 2 percent, while Uniqlo operator Fast Retailing is also adding almost 2 percent. Among automakers, Toyota is gaining more than 5 percent, while Honda is adding more than 4 percent.

In the tech space, Tokyo Electron is gaining more than 1 percent, Advantest is adding almost 1 percent and Screen Holdings advancing almost 2 percent.

In the banking sector, Mizuho Financial is gaining more than 3 percent, while Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are adding almost 3 percent each.

Among the major exporters, Canon and Sony are gaining more than 2 percent each, while Panasonic is adding almost 3 percent. Mitsubishi Electric is losing almost 2 percent.

Among other major gainers, Sumitomo Pharma is surging almost 6 percent, while Nippon Yusen K.K. and Resonac Holdings are gaining almost 5 percent each. Lasertec, Mitsui & Co., Denso, Concordia Financial Group, Kawasaki Kisen Kaisha, Hitachi, Toyota Tsusho and Subaru are adding more than 4 percent each, while Recruit Holdings and MS&AD Insurance Group are up almost 4 percent each.

Conversely, there are no other major losers.

In the currency market, the U.S. dollar is trading in the lower 143 yen-range on Thursday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore, Taiwan and Indonesia are higher by between 0.4 and 0.8 percent each. South Korea is bucking the trend and is down 0.6 percent. Malaysia is relatively flat.

On Wall Street, stocks saw considerable volatility late in the trading session on Wednesday following the Federal Reserve’s announcement of its decision to lower interest rates. The major averages showed wild swings back and forth across the unchanged line before eventually closing in negative territory.

The Dow and the S&P 500 reached new record intraday highs immediately following the Fed announcement but finished the day in the red. The Dow fell 103.08 points or 0.3 percent to 41,503.10, the S&P 500 slipped 16.32 points or 0.3 percent to 5,618.26 and the Nasdaq dipped 54.76 points or 0.3 percent to 17,573.30.

The major European markets all also moved to the downside on the day. While the U.K.’s FTSE 100 Index rose by 0.4 percent, the German Index and the French CAC 40 Index both climbed by 0.5 percent.

Crude oil prices settled lower on Wednesday, despite a drop in U.S. crude inventories and the rate cut. West Texas Intermediate crude oil futures for October ended down $0.28 or 0.39 percent at $70.91 a barrel.