Asian shares were trading mixed on Thursday, following a recovery on Wall Street after previous losses. Japan’s Nikkei 225 briefly hit a record high before slipping, while Australia’s S&P/ASX 200 and South Korea’s Kospi saw gains. However, Hong Kong’s Hang Seng and Shanghai Composite experienced declines.
Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts later this year, but emphasized the need for more data on inflation before taking action. The S&P 500 and Dow Jones Industrial Average both saw gains, with tech stocks like Nvidia and Meta Platforms driving the upward momentum.
Cybersecurity company CrowdStrike reported stronger profits than expected, leading to a jump in its stock price. Troubled New York Community Bancorp also received a lifeline of over $1 billion from investors, including former U.S. Treasury Secretary Steven Mnuchin.
Investors closely analyzed Powell’s comments for clues on future rate cuts, with expectations now shifting to June as a possible starting point. The latest job openings data did little to change these expectations, supporting the Fed’s current stance of patience on policy decisions.
In the bond market, the yield on the 10-year Treasury slipped, while in energy trading, crude oil prices saw slight declines. Currency trading saw the U.S. dollar weakening against the Japanese yen and euro.
Overall, the markets remain cautious as they await further economic data and Fed decisions in the coming months.
