Fed Outlook Weighs on Asia Stocks - InvestingChannel

Fed Outlook Weighs on Asia Stocks

Asia-Pacific stocks and currencies fell Thursday, amid a broader market selloff after the U.S. Federal Reserve delivered its third consecutive rate reduction and signaled fewer rate cuts ahead.

In Japan, the Nikkei 225 index tumbled 268.13 points, or 0.7%, to 38,813.58.

Investors assessed the Bank of Japan’s decision to keep its policy rate unchanged at 0.25% for the third straight meeting.

The Japanese yen dipped 0.74% to 155.94 against the greenback, hitting a one-month low, as BOJ Governor Kazuo Ueda said the central bank will continue raising policy rates if the economy moves in line with its forecast.

In Hong Kong, the Hang Seng dropped 112.04 points, or 0.6%, to 19,752,51.

The Hong Kong Monetary Authority on Thursday delivered a 25-basis-point interest rate cut in lock-steps with the Fed. The country’s currency is tightly pegged to the U.S. dollar.

Korean stocks pitched downward, as the South Korean won hovered near its weakest level since March 2009, and was last trading at 1,452.33 on the U.S. dollar.

Elsewhere, New Zealand’s economy sank into a recession, falling 1% in the September quarter from the prior quarter, according to the official statistics agency Stats NZ. A recession is defined as two consecutive quarters of decline.

In other markets

In Shanghai, the CSI 300 squeezed higher 3.57 points, or 0.1%, to 3,945.46.

In Taiwan, the Taiex sank 236.42 points, or 1%, to 22,932.25

In Korea, the Kospi index dipped 48.5 points, or 2%, to 2,435.93

In Singapore, the Straits Times Index fell 16.74 points, or 0.4%, at 3,762.88

In New Zealand, the NZX 50 slumped 111.4 points, or 0.9%, to 12,754.15.

In Australia, the ASX 200 stumbled 141.15 points, or 1.7%, to 8,168.22.

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