Add thelocalreport.in As A Trusted Source
Asian There was a mixed trend in stocks on Thursday after the US stock market again reached record high. federal The Reserve cut its main interest rate.
US futures fell and oil prices were little changed.
The Fed’s rate cut was widely expected, but Fed Chairman’s comments jerome powell Expectations of further cuts in 2026 encouraged.
However, some Asian technology companies fell sharply after artificial intelligence leader Oracle reported lower-than-expected earnings. Its shares fell 11.5% in aftermarket trading. Some are concerned about the company’s cash flow given its spending in AI.
In Tokyo, the Nikkei 225 index fell 1% to 50,087.11, with technology and telecommunications giant SoftBank Group Corp., a major investor in AI, falling 6.8%.
Local shares are under pressure from rising expectations that the Bank of Japan will raise interest rates at its meeting next week.
Hong Kong’s Hang Seng rose 0.1% to 25,564.87 after the Hong Kong Monetary Authority followed the Fed’s lead and cut borrowing costs to 4.00%, their lowest since October 2022. The Shanghai Composite Index fell 0.5% to 3,882.72.
Sentiment was cautious ahead of China’s November credit data. New yuan lending fell sharply in October, missing forecasts and showing weak consumer demand.
Australia’s S&P/ASX 200 rose 0.2% to 8,596.40, after three days of losses, on strength in gold and mining shares. The country’s seasonally adjusted unemployment rate was 4.3% in November, unchanged from October, below the expected 4.4%.
In South Korea, the Kospi gave up gains in the early session and fell 0.3% to 4,121.68. Taiwan’s Taiex index fell 1.3%, while India’s BSE Sensex was slightly up.
On Wednesday, the S&P 500 rose 0.7% to 6,886.68 and fell just shy of its all-time high, set in October. The Dow Jones Industrial Average jumped 1% to 48,057.75 and the Nasdaq Composite added 0.3% to 23,654.16.
wall Street Likes low interest rates because they can boost the economy and push prices higher for investment, even though they potentially make inflation worse.
There was no significant change in the market due to the cut in interest rates on Wednesday. But some investors took comfort from Powell’s comments, which they said were less forceful than anticipated about reducing the likelihood of future cuts.
Powell again said on Wednesday that the central bank is in a difficult position as the job market is slowing while inflation faces upward pressure. By attempting to fix one of those problems related to interest rates, the Fed usually makes the other problem worse in the short term.
Powell also said for the first time in this rate-cutting campaign that interest rates are back to a place where they are neither pushing inflation nor the job market up or down. That gives the Fed time to reevaluate what to do next with interest rates as more data comes in on the job market and inflation.
On Wall Street, GE Vernova soared 15.6% after the energy company raised its forecast for revenue through 2028, doubled its dividend and stepped up its program to buy back its own stock. Palantir Technologies added 3.3% while Cracker Barrel Old Country Store rose 3.5%.
In other deals early Thursday, U.S. benchmark crude oil slipped 6 cents to $58.40 a barrel. Brent crude, the international benchmark, fell 7 cents to $62.14 a barrel.
The US dollar fell to 155.90 JPY from 156.02 yen. The euro slipped to $1.1688 from $1.1696. ,
AP Business writers Stan Choe and Matt Ott contributed.