Weak Sentiment In Asian Markets After Fed’s Rate Cut

Asian markets witnessed weak sentiment in Thursday’s trading as markets digested the Fed’s widely expected rate cut, the forward guidance for 2026 and beyond, as well as the extent of dissent in the FOMC decision.

Though markets turned cautious in the aftermath of the Fed’s projection of a single rate cut for 2026, losses were limited by the less-than-expected hawkishness in the Fed’s guidance.

China’s Shanghai Composite Index slid 0.7 percent to finish trading at 3,873.32, versus the previous close of 3900.50. The day’s trading ranged between 3,862.82 and 3,904.96.

The Japanese benchmark Nikkei 225 Index slumped 0.9 percent to close trading at 50,148.82. The day’s trading range was between 49,932.5 and 50,864.

Mitsui jumped 4.85 percent. Panasonic Corp. as well as Advantest Corp. both followed with gains of more than 4.4 percent. Toppan Printing added 3.2 percent followed by Chugai Pharmaceutical that added 2.8 percent.

SoftBank Group Corp. led losses with a decline of 7.7 percent. Sumitomo Dainippon Pharma also declined 6.2 percent. Mitsubishi Heavy Industries, Mitsui Mining and Smelting Co. and Taiyo Yuden all declined more than 4 percent.

The Korean Stock Exchange’s Kospi Index shed 0.6 percent to close trading at 4,110.62. The day’s trading range was between 4,103.20 and 4,170.77.

The Hang Seng Index of the Hong Kong Stock Exchange edged slightly lower from the previous close to finish trading at 25,530.51. The day’s trading range was between a high of 25,801.34 and a low of 25,471.50.

Australia’s S&P/ASX200 Index closed trading at 8,592.00, gaining 2 percent from the previous close of 8579.40. The day’s trading range was between 8,574.10 and 8,658.90.

James Hardie Industries topped gains with a surge of 7.1 percent followed by Ramelius Resources that jumped 6.7 percent. Flight Centre Travel Group rallied 5.4 percent, Scentre Group added 4 percent, and Whitehaven Coal gained 3.1 percent.

Catalyst Metals topped losses with a decline of 8.9 percent. Aerospace business DroneShield plunged 6.6 percent followed by Mesoblast that erased 4.5 percent. Eagers Automotive as well as Austal both lost a little less than 4 percent in the day’s trading.

The NZX 50 Index of the New Zealand Stock Exchange rose 0.2 percent to close trading at 13,395.87, versus the previous close of 13,371.06. The day’s trading ranged between 13,355.70 and 13,433.41.

Summerset Group rallied 3.2 percent followed by Serko, Ryman Healthcare, Fonterra Shareholders Fund as well as Argosy Property that rallied more than 2 percent.

EROAD tumbled 5.6 percent. EBOS and Freightways lost more than 2 percent followed by Sky Network Television as well as NZX that declined more than 1 percent.

Wall Street closed on a positive note on Wednesday amidst strong hopes of another rate cut from the Federal Reserve. The Dow Jones Industrial Average jumped 1.1 percent to finish trading at 48,057.75. The tech-heavy Nasdaq Composite gained 0.3 percent to close trading at 23,654.16.

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