Most Asian stock markets advanced on Thursday, with Japan rallying to a fresh record high after the U.S. Federal Reserve reduced interest rates and signaled further cuts.
Bucking the regional trend, shares in Australia and New Zealand fell. Australia’s energy sector losses dragged the benchmark lower despite a soft jobs report supporting RBA interest rate cut bets. New Zealand equities declined after a weak economic growth print.
Benchmark indices on Wall Street ended mixed on Wednesday, while futures tied to them rose in early Asia hours on Thursday after the Fed cut.
Fed cuts rates as expected; Nikkei hits new peak
The Fed on Wednesday cut its benchmark rate by 25 basis points to a range of 4.00–4.25%, its first reduction since December.
Policymakers projected two further cuts before year-end, with Chair Jerome Powell saying the move was intended to “manage risks” as the U.S. labour market softened.
Traders lifted bets that U.S. borrowing costs would fall below 3.5% in 2026, boosting risk appetite across Asia.
In Tokyo, the Nikkei 225 jumped 1.2% to a fresh record peak of 45,296.21 points, having jumped nearly 15% this year despite U.S. tariff pressures.
The broader TOPIX index rose 0.6%. Technology and energy shares led the advance, while a weaker yen also supported exporters.
In Seoul, the KOSPI surged 1%, climbing back near record highs touched earlier this week.
Source : Investing.com