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In an impressive display of resilience, Asia-Pacific markets surged on Friday, drawing inspiration from Wall Street’s upward momentum following the Federal Reserve’s recent move. This buoyancy in the markets was spurred by key benchmarks reaching unprecedented levels, a clear indication of investor optimism.
Earlier in the week, on Wednesday, the Federal Reserve made a pivotal decision to reduce its key overnight borrowing rate by a quarter of a percentage point. This adjustment places the rate within a new range of 3.5% to 3.75%, a move aimed at bolstering economic activity.
Japan’s financial markets reacted positively to these developments. The Nikkei 225, a significant indicator of Japanese market health, climbed by 0.96%. The broader Topix index also saw a substantial increase, rising by 1.18%. Meanwhile, in South Korea, the Kospi index experienced a modest gain of 0.29%, while the Kosdaq remained relatively stable, trading close to its previous levels.
Down under, Australia’s S&P/ASX 200 index mirrored the regional trend by advancing 0.83%. These gains across Asia highlight a broader sense of confidence in the market’s ability to navigate the current economic landscape.
Japan’s benchmark Nikkei 225 rose 0.96%, while the Topix added 1.18%. South Korea’s Kospi advanced 0.29%, while the small-cap Kosdaq traded around the flatline.
Australia’s benchmark S&P/ASX 200 was 0.83% higher.
Futures for Hong Kong’s Hang Seng index stood at 25,788, slightly higher than its last close of 25,530.51.
China’s top leaders wrapped up an annual economic planning meeting Thursday by affirming broad economic support for the year ahead, including boosting consumption and stabilizing the property sector. Policymakers remained focused on bolstering domestic tech capabilities, a key priority for the upcoming five-year plan that kicks off in 2026.
Overnight in the U.S., the Dow Jones Industrial Average and S&P 500 reached new highs, with investors rotating out of high-flying tech stocks and into names that can benefit from a growing U.S. economy after the Federal Reserve cuts interest rates.
The 30-stock Dow rose 646.26 points, or 1.34%, to finish at 48,704.01, a fresh closing high. The index also scored a new record intraday high, supported by a rise in Visa shares after it was upgraded by Bank of America. The broad market S&P 500 traded up 0.21% to settle at 6,901.00, also a closing record. However, the Nasdaq Composite pulled back 0.26% to finish at 23,593.86.
—CNBC’s Evelyn Cheng, Sean Conlon and Pia Singh contributed to this report.
