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Asian stocks were generally lower on Thursday after the US Federal Reserve lowered its key benchmark rate for the first time in more than a decade, but disappointed investors by signaling that it was not the beginning of the year. 39, a new cycle of monetary easing.
At the start of trading, the Hong Kong Hang Seng Index and China's CSI 300, listed in Shanghai and Shenzhen, both fell by around 0.5%.
During the night, the US central bank lowered its key rate by 25 basis points, marking the first such reduction since 2008. However, Jerome Powell, president of the Fed, said in a subsequent statement that the The widely awaited decision was a "mid-term adjustment of the financial situation". "rather than" the beginning of a long cycle of cutting. "Some investors were hoping for a larger cut of 50 basis points or indications that further cuts were underway.
Following Powell's less accommodating comments than expected, the US dollar index gained about 0.3% during trading hours in Asia, pushing down major currencies, including the British pound. , the euro and the renminbi.
The only market that immediately benefited was Japan's Topix, which rose 0.2% as the yen weakened since ¥ 109 on the greenback, which is generally interpreted as positive for Japanese exporters.
"In the short term, markets may be disappointed by the Fed's lack of commitment to aggressively reducing rates," said Tai Hui, chief markets strategist for Asia-Pacific at JPMorgan Asset Management.
On Thursday morning, the Hong Kong Monetary Authority – the de facto central bank of the Asian financial hub – immediately followed the Fed by cutting local interest rates by 25 basis points. The currency of Hong Kong is indexed to the dollar, which means that it is obliged to follow the rules of US rates. The Hong Kong dollar was unchanged from its US counterpart.
In commodities, Brent crude, the international oil marker, fell more than 1% as a result of the Fed's decision.
The futures on the S & P 500 index were about to open when Wall Street began trading later on Thursday.
To come up
- Inflation in Thailand and Indonesia
- Spain, Italy PMI
- Bank of England rate decision and inflation report
Stories of the best markets
Markets Briefing is an overview of global markets, updated throughout the trading day by Financial Times journalists in Hong Kong, New York and London. Return of information? Write in the comments below or send us an email.
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