Japan, Tokyo city skyline, Tokyo Tower.
Prisma by Dukas | Universal Image Group | Getty Images
Asia-Pacific stocks and currencies fell on Thursday, triggering a broader market sell-off after the Federal Reserve cut interest rates for a third consecutive time and signaled smaller cuts ahead.
Investors evaluated Bank of Japan’s decision Policy rate kept unchanged at 0.25% for third consecutive meeting. The yen fell to 155.40 against the dollar after the announcement, compared with 154.60 before the Bank of Japan announced the news.
In response to the central bank’s actions, Nikkei 225 Index It resumed online after the lunch break, and the decline narrowed to 0.63%, narrower than the previous 0.96%. The Topix fell 0.49%.
South Korea’s Kospi index fell 1.65%, and the Kosdaq index fell 1.65%. The South Korean won is hovering near its lowest level against the dollar since March 2009, last trading at $1,450.46.
Australian S&P/ASX 200 Index Trading volume fell by 1.96%.
Hong Kong Hang Seng Index The CSI 300 Index fell 0.88%, and the CSI 300 Index fell 0.62%.
The Hong Kong Monetary Authority issued a Cut interest rates by 25 basis points In lockstep with the Fed. The country’s currency is closely pegged to the U.S. dollar.
Elsewhere, New Zealand’s economy is in recession, September quarter down 1% compared with the previous season, according to Statistics New Zealand’s official statistics agency. A recession is defined as two consecutive quarters of decline.
Overnight in America, Dow Jones Industrial Average It fell 1,123.03 points, or 2.58%, to 42,326.87 points, recording 10 consecutive losses for the first time since 1974. Broad S&P 500 Index Down 2.95% to 5,872.16 Nasdaq Index It fell 3.56% to 19,392.69.
The sell-off on Wall Street came after the central bank cut overnight borrowing rates by 10%. 25 basis points, with a target range of 4.25% to 4.5%. Although the rate cut was widely expected, the Fed said it would cut interest rates only twice in 2025, down from the four rate cuts previously forecast.
“We’ve gotten to this point very quickly, but I think our progress will obviously slow down as we look forward,” Fed Chairman Jerome Powell said at a post-meeting press conference.
—CNBC’s Brian Evans and Lisa Kailai Han contributed to this report.
