Japan, Hong Kong lead gains in Asia-Pacific markets as investors digest outsized Fed rate cut
Asia-Pacific markets rose in choppy trading Thursday, as investors assessed the Federal Reserve’s decision to cut interest rates by a half-percentage point.
Japan’s Nikkei 225 rose 2.13% to end at 37,155.33, while the broad-based Topix climbed 2.01% to finish at 2,616.87.
The Fed lowered its benchmark borrowing rate by a half percentage point, bringing its target range to 4.75% to 5%.
In lockstep with the Fed, the Hong Kong Monetary Authority cut its interest rate by 50 basis points to 5.25%, as the city’s currency is pegged to the greenback.
Hong Kong’s Hang Seng index rose 2.17% in the final hour of trade.
The Bank of Japan has kicked off a two-day meeting ending Friday, where the central bankers will make a key rate decision, after the central bank ended its decades-long ultra-low interest rates regime earlier this year.
The Japanese yen strengthened slightly to 142.18 against the U.S. dollar in afternoon trading.