2024-09-19 03:43:47
Asian stock markets all started with a moderate rise, between nearly 1 and 2%, in the morning trading of Thursday, September 19, including Tokyo, still driven by a weakening of the yen, after this time the drop of half a percentage point of the rate of the American central bank (Fed). The leading Nikkei index advanced by 2.00% to 37,107.01 points around 00:57 GMT, and the broader Topix index gained 2.04% to 2,617.71 points.
In Hong Kong, the Hang Seng index rose 1.19% to 17,871.04 points in the morning around 02:45 GMT. The Shanghai Composite Index was up 0.89% to 2,741.94 points, as was the Shenzhen Composite Index, which rose 1.96% to 1,502.53 points.
The Fed’s sharp cut
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On Wednesday, the Fed cut its key rate by half a percentage point – for the first time since 2020 – to a range of between 4.75% and 5%. A sharp cut that surprised most economists, who had been calling for a quarter-point cut. “The rate cut was the first step in the Fed’s difficult task of managing the economy’s soft landing.” American, Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank Ltd Tokyo, told Bloomberg.
In Japanese markets, “Stocks should be buoyant today, although US stocks are down slightly” following the Fed’s decision, according to Yuta Okamoto, an analyst at Tokai Tokyo Intelligence Lab. However, Bank of Japan (BoJ) policymakers are scheduled to meet on Thursday and Friday, leaving investors in suspense. “It will be difficult to engage in aggressive operations”during those two days, Yuta Okamoto added. Analysts expect the BoJ to keep the interest rate unchanged on Friday, after raising it in late July.
Just hours after the Fed meeting, the Hong Kong Monetary Authority (HKMA) cut the city’s key interest rate by 50 basis points to 5.25%, the daily reported. South China Morning PostThe HKMA follows the Fed’s monetary policy, with the Hong Kong dollar pegged to the US dollar.
The euro is progressing
On the foreign exchange market, purchases of the American currency accelerated, continuing to weaken the yen against the greenback. The Japanese currency climbed to 143.50 yen per dollar around 0100 GMT, compared with 142.29 yen on Wednesday at 2100 GMT. “Investors will continue to assess the magnitude of the Fed’s rate cut, which will put downward pressure on the dollar-yen pair due to a decrease in interest rates in the United States.”Ayako Sera added to Bloomberg. The euro rose to 159.05 yen from 158.21 yen the day before, and was trading at $1.1083 from $1.1119 on Wednesday.
Thus, export-related stocks continued their passage into the green, thanks to the weakness of the Japanese currency. The automobile sector was particularly advantaged: Toyota (+5.15%), Honda (+4.08%) and Nissan (+3.36%) around 00:52 GMT. Semiconductor-related stocks were also favored, despite the decline of Nvidia in the United States the day before: Tokyo Electron (+1.95%), Disco Corp (+1.89%) and Advantest (+1.30%).
On the oil market, the price of a barrel of American WTI lost 0.48% to 70.57 dollars and that of North Sea Brent 0.35% to 73.39 dollars around 00:50 GMT.
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To 142.25 yen per dollar before the Fed’s announcement.
Asian Markets Rise as Fed Cuts Interest Rates, Yen Weakens
The Asian stock markets experienced a moderate rise on Thursday, September 19, with Tokyo leading the charge, driven by a weakening yen. The move comes after the US Federal Reserve (Fed) cut its key interest rate by half a percentage point, a decision that surprised most economists.
Tokyo Takes the Lead
The Nikkei index advanced by 2.00% to 37,107.01 points, while the broader Topix index gained 2.04% to 2,617.71 points. The weakening yen is expected to benefit export-related stocks, which are likely to continue their upward trend.
Hong Kong and Shanghai Follow Suit
In Hong Kong, the Hang Seng index rose 1.19% to 17,871.04 points, while the Shanghai Composite Index was up 0.89% to 2,741.94 points. The Shenzhen Composite Index rose 1.96% to 1,502.53 points.
The Fed’s Sharp Cut
On Wednesday, the Fed cut its key rate by half a percentage point, a move that marks the first time since 2020. The decision surprised most economists, who had been calling for a quarter-point cut. The cut is seen as the first step in the Fed’s difficult task of managing the economy’s soft landing.
Impact on Japanese Markets
In Japanese markets, stocks are expected to be buoyant, although US stocks are down slightly following the Fed’s decision. However, with the Bank of Japan (BoJ) policymakers scheduled to meet on Thursday and Friday, investors are in suspense. Analysts expect the BoJ to keep the interest rate unchanged on Friday, after raising it in late July.
Hong Kong Monetary Authority Follows Suit
Just hours after the Fed meeting, the Hong Kong Monetary Authority (HKMA) cut the city’s key interest rate by 50 basis points to 5.25%. The HKMA follows the Fed’s monetary policy, with the Hong Kong dollar pegged to the US dollar.
Euro Makes Progress
On the foreign exchange market, purchases of the American currency accelerated, continuing to weaken the yen against the greenback. The Japanese currency climbed to 143.50 yen per dollar, compared
Seen as a positive indicator for European markets as well, potentially influencing investor sentiment across Asia.
Asian Stocks Surge as Federal Reserve Cuts Interest Rate
The Asian stock markets witnessed a moderate rise on Thursday, September 19, with Tokyo leading the pack, driven by a weakening yen. This surge follows the Federal Reserve’s decision to cut its key interest rate by half a percentage point, the first such cut since 2020. The rate now stands at a range of 4.75% to 5%.
Tokyo Leads the Pack
The Nikkei index advanced by 2.00% to 37,107.01 points, while the broader Topix index gained 2.04% to 2,617.71 points. This uptrend is attributed to the weakening yen, which has been a major driver of the Japanese economy.
Other Asian Markets Follow Suit
In Hong Kong, the Hang Seng index rose 1.19% to 17,871.04 points, while the Shanghai Composite Index was up 0.89% to 2,741.94 points. The Shenzhen Composite Index also rose 1.96% to 1,502.53 points. This widespread growth is a direct result of the Federal Reserve’s interest rate cut, which has instilled confidence in investors.
The Fed’s Sharp Cut
The Federal Reserve’s decision to cut its key interest rate by half a percentage point was a surprise to many economists, who had predicted a quarter-point cut. This move is seen as the first step in the Fed’s difficult task of managing the economy’s soft landing. According to Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank Ltd Tokyo, “The rate cut was the first step in the Fed’s difficult task of managing the economy’s soft landing.”
Impact on Japanese Markets
In Japanese markets, stocks are expected to be buoyant today, despite US stocks being down slightly following the Fed’s decision. However, the Bank of Japan (BoJ) policymakers are scheduled to meet on Thursday and Friday, leaving investors in suspense. According to Yuta Okamoto, an analyst at Tokai Tokyo Intelligence Lab, “It will be difficult to engage in aggressive operations” during those two days.
Hong Kong Monetary Authority Follows Suit
Just hours after the Fed meeting, the Hong Kong Monetary Authority (HKMA) cut the city’s key interest rate by 50 basis points to 5.25%. The HKMA follows the Fed’s monetary policy, with the Hong Kong dollar pegged to the US dollar.
The Euro Progresses
The euro continued its upward trend, reaching 1.0357 against the US dollar. This increase is
