Asia markets open mixed as Fed signals December rate cut is not a certainty

Asia-Pacific markets were mixed on Thursday after US Federal Reserve Chairman Jerome Powell said a December rate cut was far from “a foregone conclusion.”

The Fed on Wednesday cut its benchmark federal funds rate by 25 basis points to 3.75%-4%, as expected.

In Asia, investors will closely watch the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, the first face-to-face meeting between the two leaders in Trump’s second term.

South Korean markets will also be in the spotlight after Seoul’s chief policy adviser Kim Yong-beom announced details of the trade deal with Washington.

According to local media reports, South Korea will invest $200 billion in the United States, with an annual ceiling of $20 billion. According to local media reports, the remaining 150 billion dollars of the total commitment of 350 billion dollars announced at the beginning of this year will be used for cooperation in shipbuilding.

kospi While it gained 1.37% in value at the opening with the increases in automobile and shipbuilding stocks, small-scale Kosdaq lost 0.1%.

of japan Nikkei 225 Topix rose 0.1% as it fell slightly below a flat line at the open.

Australia’s S&P/ASX 200 started the day with a 0.29% loss.

Hong Kong’s Hang Seng index is set to rise as trading resumes following the holiday break. HSI futures settled at 26,598, above HSI’s last close of 26,346.14.

The Dow Jones Industrial Average index closed the night in the USA with a decline on Wednesday following Powell’s statements and reached a record level in the early hours of the session.

While the Dow index closed at 47,632.00 points, losing 0.2 percent, the S&P 500 index closed at 6,890.59 points, with a slight decrease.

However, Nasdaq Composite rose 0.55% to a new record close of 23,958.47, supported by the rise in Nvidia.

—CNBC’s Sean Conlon and Sarah Min contributed to this report.