Asian stock markets showed a mixed performance today as investors adopted a cautious stance ahead of what is expected to be the first interest rate cut of 2025 by the US Federal Reserve.
Although markets have seen strong gains in recent weeks with several indices reaching new all-time highs, traders are now in a holding pattern, awaiting both the rate decision and the accompanying remarks from Fed Chair Jerome Powell. While a 25 basis point cut is largely anticipated, the market’s focus is on future policy direction, particularly the pace and number of rate reductions that may follow.
Recent US economic data points to a softening labour market, which has boosted expectations of a prolonged easing cycle. However, persistent inflation above the Fed’s 2% target continues to cloud the outlook, leaving policymakers in a difficult position.
In Asia, investor sentiment was subdued following a relatively uneventful trading session on Wall Street. Gains were recorded in markets such as Tokyo, Hong Kong, Manila, and Jakarta, while losses were seen in Seoul, Shanghai, Sydney, Singapore, Wellington, and Taipei.
