BY COMFORT OGBONNA
Asian markets delivered a mixed performance on Thursday as traders digested the latest U.S. Federal Reserve rate cut and assessed its broader implications for global growth, inflation, and corporate earnings. While the Fed’s move was widely anticipated, comments from Chair Jerome Powell helped fuel expectations that additional cuts could arrive in 2026, offering some support to investor sentiment even as volatility persisted across the region.
U.S. futures drifted lower in early trading, and oil prices held relatively steady, reflecting a cautious tone following Wall Street’s climb toward record territory. On Wednesday, the S&P 500 advanced 0.7% to close just beneath its all-time high, driven largely by optimism about the Fed’s evolving stance. The Dow Jones Industrial Average rose 1%, while the Nasdaq composite added 0.3%, as investors continued rewarding sectors poised to benefit from a gentler interest-rate environment.
But not all corners of the market participated in the rally. Several major Asian technology stocks experienced significant pressure after Oracle, seen as a key indicator of sentiment in the artificial intelligence sector, reported earnings that fell short of expectations. The company’s shares tumbled more than 11% in aftermarket trading, stoking concerns about whether heavy spending on AI infrastructure will strain its cash flow and trigger broader caution across global tech markets.
In Tokyo, the Nikkei 225 slid 1% to 50,087.11. SoftBank Group, a heavyweight in both technology and telecoms and a prominent backer of AI startups, plunged 6.8%, pulling the broader index lower. Local investor confidence remained fragile amid growing speculation that the Bank of Japan may raise interest rates at its meeting next week, a shift that could further reshape financial conditions after decades of ultra-loose policy.
Hong Kong’s Hang Seng edged 0.1% higher to 25,564.87 after the Hong Kong Monetary Authority mirrored the Fed’s move, lowering its base rate to 4.00%—the lowest level in over two years. Meanwhile, the Shanghai Composite fell 0.5% to 3,882.72 as investors awaited China’s November credit data. October figures revealed a sharp drop in new yuan loans, signaling weaker consumer activity and adding to concerns about the strength of China’s ongoing economic recovery.
Australia’s S&P/ASX 200 climbed 0.2% to 8,596.40, breaking a three-day losing streak thanks to gains in mining and gold stocks. The country’s unemployment rate remained unchanged at 4.3% in November, surprising analysts who had expected a slight uptick.
Elsewhere in the region, South Korea’s Kospi gave up early gains to slip 0.3% to 4,121.68. Taiwan’s Taiex retreated 1.3%, pressured by weakness in semiconductor-linked shares, while India’s Sensex hovered slightly higher as local investors weighed global developments against domestic economic resilience.
Across financial markets, the Fed’s latest policy shift continued to influence expectations. Powell reiterated that the central bank remains in a delicate balancing act: easing rates too quickly risks reigniting inflation, while tightening or holding too firmly could further cool the job market. Notably, he suggested for the first time during this rate-cutting phase that the current level of interest rates is no longer actively stimulating or restraining the economy, giving policymakers more room to pause and evaluate incoming data.Wall Street responded positively to corporate announcements as well. GE Vernova surged more
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