Tokyo’s Nikkei led Asian markets higher following the US Federal Reserve’s significant half-point interest rate cut. The yen reached a two-week high after the Fed’s move and its commitment to further reductions.
Most Asian markets saw gains, with Tokyo climbing more than 2% as the yen approached 144 per dollar. Hong Kong also benefited, as its central bank cut rates due to the city’s currency peg to the dollar. Other markets, including Shanghai, Sydney, Singapore, Wellington, Taipei, Manila, and Jakarta, advanced as well.
Meanwhile, New Zealand’s economy contracted by 0.2% in the second quarter, following weak growth of 0.1% in the previous quarter, pushing the country closer to recession.
In the US, the S&P 500 initially rose by 1% after the Fed’s rate cut but later slipped, closing down 0.3% at 5,618.26. The Dow Jones Industrial Average also fell by 0.3%, ending at 41,503.10, while the Nasdaq Composite dropped by a similar margin, closing at 17,573.30. The yield on 10-year US Treasury notes increased to 3.71%, up from 3.64% on Tuesday.
