An overhead view of Seoul on an autumn morning in 2016.
Natapol Busey | Moment | Getty Images
Asia-Pacific markets were mixed on Thursday after Federal Reserve Chairman Jerome Powell said an interest rate cut could come in September if inflation data remains “encouraging.”
Previously, the Federal Reserve’s Federal Open Market Committee meeting ended on Wednesday and decided to maintain the federal funds rate at the current level of 5.25% to 5.5%.
Powell warned that a rate cut was not guaranteed, but he also appeared to rule out a 50 basis point cut.
“I don’t want to be specific about what we’re going to do, but it’s not something we’re considering right now,” he said.
In addition to the Fed’s comments, Asian investors will also assess business activity data from across the region, including purchasing managers’ index data from China, Japan and South Korea.
Japan’s Nikkei 225 Index It opened down 1.6%, while the broad-based Topix dropped 1.49%.
On Wednesday, the Bank of Japan raised its benchmark interest rate to “around 0.25%,” the highest level since 2008.
Australia’s S&P/ASX 200 index rose 0.41%, hitting a record high.
South Korea’s Kospi rose 0.77% and the small-cap Kosdaq rose 0.86%.
Hong Kong’s Hang Seng Index The futures index was at 17,377 points, lower than the Hang Seng Index’s last closing point of 17,344.6 points. The city saw its GDP increased by 3.3% annually Second-quarter growth exceeded the 2.7% growth expected by economists polled by Reuters.
Overnight, U.S. stocks rose after the Federal Reserve kept interest rates on hold as expected, while traders also piled into large technology stocks.
The S&P 500 Index rose 1.58% to close at 5,522.30 points; the Nasdaq Index rose 2.64% to close at 17,599.40 points. It was the best trading day for both indexes since February.
The Dow Jones Industrial Average rose 99.46 points, or 0.24%.
—CNBC’s Pia Singh, Alex Harring and Samantha Subin contributed to this report.
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