Stocks Markets Across Asia Trade Higher On The News Of Fed Rates Cut
04 Oct

In the recent time, stocks across Asia were higher following the U.S. Fed (Federal Reserve) curbed the interest rates overnight, but the U.S. central bank seemed divided on its upcoming way of action for the year. Chinese stocks were trading higher, with the Shanghai Composite gaining by 0.46% at 2,999.28 and the Shenzhen Component advanced by 1.01% to settle at 9,852.20. The Shenzhen Composite recovered by 1.028% to about 1,672.63. However, Hang Seng index in Hong Kong fell by 1.07% to settle at around 26,468.95. The shares of life insurer AIA declined by 3.04%. In Japan, the Nikkei 225 index surged by 0.38% to settle at 22,044.45 whereas, the Topix index also advanced by 0.56% to close its trading at 1,615.66.

In South Korea, the Kospi index was higher by 0.46% higher at 2,080.35 since shares of Samsung Electronics climbed by 3.04%. In Australia, S&P/ASX 200 rose by 0.54% to end its trading day at 6,717.50. The data was released by the ABS (Australian Bureau of Statistics) showed that the country’s unemployment rate jumped by 5.3% in August. After the employment data was published, the Australian dollar slipped at about $0.6787, previously it was trading at $0.684. In general, the MSCI Asia ex-Japan index fell by 0.51%. The moves regionally came since financiers reacted to a sequence of latest moves by central banks worldwide.

On a similar note, recently, Fed curbed the interest rate consecutively for the second time. The U.S. FOMC (Federal Open Market Committee) of the Fed delivered second rate curb in a row, reducing the interest rates by almost 25 basis points on the grounds of global uncertainties. Presently, the rate stands in the range of 1.75–2%. Whilst the U.S. consumers persisted to make big procure due to an uptick in wages, unsolved trade conciliations amid China and the U.S. have dampened business sentiment and slowed the manufacturing industry.

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