Asia stocks climb after Fed rate cut.
Most Asian stock markets advanced on Thursday, with Japan rallying to a fresh record high after the U.S. Federal Reserve reduced interest rates and signaled further cuts.
Bucking the regional trend, shares in Australia and New Zealand fell. Australia’s energy sector losses dragged the benchmark lower despite a soft jobs report supporting RBA interest rate cut bets. New Zealand equities declined after a weak economic growth print.
Benchmark indices on Wall Street ended mixed on Wednesday, while futures tied to them rose in early Asia hours on Thursday after the Fed cut.
Fed cuts rates as expected; Nikkei hits new peak
The Fed on Wednesday cut its benchmark rate by 25 basis points to a range of 4.00–4.25%, its first reduction since December.
Policymakers projected two further cuts before year-end, with Chair Jerome Powell saying the move was intended to “manage risks” as the U.S. labour market softened.
Traders lifted bets that U.S. borrowing costs would fall below 3.5% in 2026, boosting risk appetite across Asia.
Dollar firms after post-Fed rollercoaster ride.
The U.S. dollar ticked higher on Thursday following its plunge to a 3-1/2-year low and then forceful rebound as traders grappled with the ramifications of the Federal Reserve’s measured stance on further interest rate cuts.
The Fed reduced rates by a quarter point on Wednesday, as expected, and indicated it will steadily lower borrowing costs for the rest of this year. Fed Chair Jerome Powell characterised the day’s policy action as a risk-management cut in response to the weakening labour market, but said the central bank does not need to rush easing.
The dollar dropped to the lowest since February 2022 at 96.224 against a basket of major peers immediately after the rate decision, but sprang back vigorously to be as much as 0.44% higher on the day at 97.074. It continued that climb on Thursday to stand at 97.163.
The Fed’s closely watched dot plot of policy expectations predicted a median 50 basis points of additional cuts over the remaining two policy meetings of this year, but only one additional reduction in 2026.
Bitcoin price today: steadies at $117k.
Bitcoin steadied on Thursday, with broader crypto markets advancing after the Federal Reserve cut interest rates and flagged more monetary easing, largely in line with market expectations.
Crypto markets were also encouraged by the U.S. Securities and Exchange Commission approving new listing standards for exchange-traded products, opening the door for more funds tracking cryptos.
But caution over the Fed’s outlook on the economy and inflation, coupled with persistent doubts over corporate crypto treasuries, kept overall gains in crypto markets limited.
Bitcoin rose 0.1% to $117,267.6 by 01:29 ET (05:29 GMT).
Fed cuts rates by 25 bps as expected, sees more cuts
The Fed cut its benchmark interest rate by 25 basis points to a range of 4.0% to 4.25%, as expected, on Wednesday.
The central bank’s forecasts showed policymakers supporting more easing in the remainder of the year, especially if the labor market continued to deteriorate.
But Fed Chair Jerome Powell still flagged risks towards the U.S. economy, especially from a cooling labor market and sticky inflation. Powell also largely dismissed calls for a bigger, 50 basis point cut, as demanded by President Donald Trump and his allies.
Lower rates bode well for crypto, given that they encourage more capital into speculative markets. The sector’s 2021 bull run was driven chiefly by global interest rates falling to near zero levels in the aftermath of the COVID-19 pandemic.
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