- Asian stocks mostly rose on Friday, tracking overnight gains on Wall Street in the aftermath of the Federal Reserve’s substantial 50 basis point rate cut. Japan’s Nikkei 225 outperformed, rising 1.8%, while the broader TOPIX added 1.5%.
- The Bank of Japan kept interest rates unchanged as expected but signaled expectations for steady increases in inflation. The yen firmed slightly after the decision, with USDJPY falling 0.2% to 142.28.
- Chinese stocks underperformed as the People’s Bank of China kept its benchmark lending rate unchanged, countering expectations for further stimulus. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell slightly.
- Hong Kong’s Hang Seng index rose 1.3%, boosted by gains in technology stocks. South Korea’s KOSPI climbed 1%, while Australia’s ASX 200 added 0.3% to hit a record high.
- The dollar weakened broadly following the Fed’s rate cut. The dollar index and dollar index futures both declined slightly in Asian trade.
- Oil prices were little changed but on track for a second straight week of gains. Brent crude futures were down 0.3% at $73.69 a barrel, while WTI crude futures traded at $70.95.
- Gold hovered near record highs at $2,592.17 an ounce, benefiting from the weaker dollar and lower interest rate environment.
- Huawei and Apple’s latest smartphones went on sale in China, with many Huawei fans disappointed that its new $2,800 tri-foldable Mate XT phone was not available for walk-in customers due to supply constraints.
- FedEx reported a steep quarterly profit drop and lowered its full-year revenue forecast as customers continued to shift from fast, expensive delivery options to cheaper, slower alternatives.
- The Bank of Thailand’s governor stressed the need for central bank independence in setting monetary policy amid disagreements with the government over interest rate cuts.
- Oil refiners globally are facing a drop in profitability to multi-year lows, signaling softening consumer and industrial demand, especially in China.
- EURUSD is flat, silver is up 0.7% and gold only 0.2%. Cryptocurrency market is flashing green after the FED; currently Bitcoin is up 2% today and Ethereum is trading almost 4% higher.
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