Most Asian stock markets advanced Thursday after the U.S. Federal Reserve cut interest rates and signaled further easing, boosting investor sentiment across the region.
The Fed reduced its benchmark rate by 25 basis points to 4.00–4.25%, its first cut since December, and projected two more reductions this year. Chair Jerome Powell said the move was aimed at “managing risks” amid signs of a softer U.S. labor market. Traders raised bets that U.S. rates could fall below 3.5% by 2026, fueling global risk appetite.
Japan’s Nikkei 225 surged 1.2% to a record 45,296.21, supported by technology and energy shares, while the broader TOPIX rose 0.6%. A weaker yen also lifted exporter stocks. South Korea’s KOSPI gained 1%, led by chip giants SK Hynix and Samsung Electronics, amid renewed AI optimism.
In China, the Shanghai Composite advanced 0.5% to a decade-high, while the CSI 300 added 0.3%. Hong Kong’s Hang Seng was flat after sharp gains earlier in the week. Reports that Beijing directed domestic firms to halt Nvidia AI chip purchases weighed on sentiment.
Elsewhere, Singapore’s Straits Times Index edged up 0.2%, and India’s Nifty 50 futures rose 0.2% ahead of market open.
Bucking the regional trend, Australia’s S&P/ASX 200 fell 0.7%, dragged by steep losses in the mining sector. Data showed employment fell by 5,400 in August, with a sharp drop in full-time jobs, reinforcing expectations of further Reserve Bank of Australia rate cuts.
New Zealand’s NZX 50 slipped nearly 1% after GDP shrank 0.9% in Q2, far worse than forecasts. Annual GDP contracted 0.6%, increasing pressure on the Reserve Bank of New Zealand to accelerate easing.


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