Global Markets Today: Nikkei 225, Kospi trade mixed after US Fed cut rates

Global Markets Today: Asian markets opened on a weaker note after the U.S. Federal Reserve cut its benchmark rate on Wednesday, as widely anticipated. Fed Chair Jerome Powell described the move as a “risk management cut,” emphasizing it was not primarily aimed at addressing economic weakness.

The central bank also signaled the possibility of two additional rate cuts this year, one in 2026, another in 2027, and none in 2028.

At the open, Japan’s Nikkei 225 gained 0.31 per cent, while South Korea’s Kospi advanced 0.43 per cent. In contrast, Australia’s S&P/ASX 200 slipped 0.47 per cent.

Meanwhile, Hong Kong’s Hang Seng Index was poised for a weaker start, with futures trading at 26,829 compared to the previous close of 26,908.39.

U.S. stock market today

The Nasdaq and S&P 500 ended lower in volatile trade on Wednesday after the U.S. Federal Reserve delivered a widely expected 25-basis-point rate cut, with Fed Chair Jerome Powell pointing to a weak labor market. Meanwhile, the Dow finished higher after fluctuating during Powell’s remarks.

The central bank signaled it will continue with gradual rate cuts through the rest of the year, projecting two additional quarter-point reductions as policymakers highlighted concerns over labor market softness.

The Dow Jones Industrial Average climbed 260.42 points, or 0.57 per cent, to 46,018.32. The S&P 500 slipped 6.41 points, or 0.10 per cent, to 6,600.35, while the Nasdaq Composite declined 72.63 points, or 0.32 per cent, to 22,261.33.

At a press briefing, Powell highlighted that employment now faces greater downside risks than inflation, while noting that inflation concerns still need to be evaluated and addressed. According to LSEG data, investors had already factored in this rate cut.

(With inputs from agencies)

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