Shibuya crossing in known to be the world’s busiest pedestrian crossing
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Asia-Pacific markets were set to open higher on Thursday, following the Federal Reserve’s third rate cut of the year.
The U.S central bank cut the Federal Funds rate by 25 basis points to 3.5%-3.75%, and signalled that it was probably done cutting for now.
Fed Chair Jerome Powell, at his post-meeting news conference, said the reduction puts the Fed in a comfortable position as far as rates go.
“We are well-positioned to wait and see how the economy evolves,” Powell said, and noted President Donald Trump’s tariffs have been a driver of inflation.
Australia’s S&P/ASX 200 climbed 0.6% in early trade.
Japan’s Nikkei 225 futures pointed to a stronger open for the market, with the futures contract in Chicago at 50,910 and its counterpart in Osaka at 50,860 compared to the previous close of 50,602.8.
Hong Kong Hang Seng index futures were at 25,602, higher than the index’s last close of 25,540.78.
In addition to the rate decision Wednesday, the Fed also announced it will resume buying $40 billion in Treasury bills, beginning Friday. Short-term Treasury yields moved lower as a result.
The central bank also addressed the weak labor market in its statement, removing language stating that it “remained low.” This suggests its focus is shifting to supporting the economy, away from inflation.
Overnight in the U.S., the Dow Jones Industrial Average jumped on Wednesday, climbing 1.1% after the Fed decision, while the S&P 500 advanced 0.7% and the Nasdaq Composite increased 0.3%.
— CNBC’s Jeff Cox, Sean Conlon and Pia Singh contributed to this report.