Asian Markets: Positive Sentiment Following the Fed; Dollar Stabilizes
Asian markets opened positively on Friday, driven by the U.S. Federal Reserve’s recent interest rate cut and the anticipation of further monetary easing, mirroring Wall Street’s performance from the previous day.
On Thursday, the U.S. central bank reduced rates for the second time this year by 0.25%, bringing them to a range of 4.50% to 4.75%. Chairman Jerome Powell highlighted progress in combating inflation.
In the foreign exchange market, the dollar regained strength after spiking following Donald Trump’s victory announcement. The greenback exhibited only a modest response to the Fed’s rate cut, which had largely been anticipated by the markets.
As of 01:45 GMT, the dollar appreciated by 0.1% against the Japanese yen, trading at 153.06 yen per dollar. It also strengthened against the euro, priced at 1.0787 dollars per euro, down from 1.0805 dollars the day before.
Oil prices dipped after rebounding the previous day, as the market continued to evaluate the potential impact of a new Trump presidency on crude oil prices.
By 01:45 GMT, Brent crude had decreased by 0.22% to $75.46 per barrel, while West Texas Intermediate (WTI) fell by 0.39% to $72.08.
In Tokyo, around 01:45 GMT, the benchmark Nikkei index rose by 0.35% to 39,519.39 points, while the broader Topix index increased by 0.12% to 2,746.50 points.
Chinese markets also displayed positive movement shortly after opening: Hong Kong surged by 1.2% to 21,203.77 points, Shanghai gained 0.14% to 3,475.44 points, and Shenzhen was up 0.35% to 2,108.10 points.
