Asian shares mostly rose on Thursday following a strong finish on Wall Street, with expectations for U.S. interest rate cuts this year remaining solid. Japan’s Nikkei 225 surged 1.7%, while Sydney’s S&P/ASX 200 and South Korea’s Kospi also saw gains. However, Hong Kong’s Hang Seng and Shanghai Composite experienced declines.
Analysts are optimistic about Taiwan Semiconductor Manufacturing Co’s (TSMC) facilities receiving quicker relief after a powerful earthquake struck, easing concerns about production halts. Trading was closed in Taiwan for national holidays.
On Wall Street, the S&P 500 and Nasdaq composite edged higher, while the Dow Jones Industrial Average slipped. GE Aerospace and Cal-Maine Foods were among the top performers, offsetting losses for Intel and The Walt Disney Co.
Stocks have slowed down after a significant rally, with concerns rising about the Fed’s ability to deliver interest rate cuts as hoped. Fed Chair Jerome Powell emphasized the importance of data guiding policy decisions, as the economy remains strong.
Market nerves were calmed by a report showing cooling growth in U.S. services businesses, but a private sector hiring report suggested stronger gains than expected. Traders have adjusted their expectations for Fed rate cuts, with Treasury yields falling.
In energy trading, benchmark U.S. crude and Brent crude both saw gains. In currency trading, the U.S. dollar inched up against the Japanese yen and the euro.
Overall, the markets are closely watching economic data and Fed policy decisions as they navigate uncertainties and adjust expectations accordingly.
