A container ship sails past buildings in Busan, South Korea, on Thursday, Sept. 22, 2022. Photographer: SeongJoon Cho/Bloomberg via Getty Images
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Asia-Pacific markets were mixed on Thursday, after U.S. Federal Reserve Chair Jerome Powell indicated that a rate cut in December was far from a “foregone conclusion.”
The Fed on Wednesday slashed the benchmark federal funds rate by 25 basis points, as expected, to bring it to 3.75%-4%.
In Asia, investors will closely watch a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping — the first in-person meeting between the two leaders in Trump’s second term.
South Korea’s markets will also be in focus after Seoul’s chief policy advisor Kim Yong-beom reportedly released details of the trade deal with Washington.
South Korea will invest $200 billion in the U.S., with an annual cap of $20 billion a year, while the remaining $150 billion of its $350 billion total pledge announced earlier this year will be used for shipbuilding cooperation, according to local media reports.
The Kospi gained 1.37% on open with gains seen in auto and shipbuilding stocks, while the small-cap Kosdaq was down 0.1%.
Japan’s Nikkei 225 dipped marginally below the flatline on open, while the Topix rose 0.1%.
Australia’s S&P/ASX 200 started the day down 0.29%.
Hong Kong’s Hang Seng index was poised to rise as it resumes trading after a holiday holiday. HSI futures were at 26,598, higher than the HSI’s last close of 26,346.14.
Overnight in the U.S., the Dow Jones Industrial Average closed lower Wednesday after Powell’s remarks, having hit a record high earlier in the session.
The Dow closed down 0.2% at 47,632.00, while the S&P 500 ended marginally lower at 6,890.59.
However, the Nasdaq Composite gained 0.55% to a fresh record close of 23,958.47, propped up by a rise in Nvidia.
—CNBC’s Sean Conlon and Sarah Min contributed to this report.
