Asian stocks mixed after Wall Street rallies as 'time has come' for rate cuts
Asian stocks are mixed after U.S. stocks rallied close to their records on the expectation the Federal Reserve will start cutting interest rates soon to help the economy
HONG KONG — Asian stocks were mixed Monday after U.S. stocks rallied close to their records on the expectation the Federal Reserve will start cutting interest rates soon to help the economy.
U.S. futures edged lower. Oil prices rose after Israel and the Lebanese militant group Hezbollah traded heavy fire early Sunday, triggering potential supply worries among the markets.
On Friday, Fed Chair Jerome Powell said the time had come to lower the main interest rate from a two-decade high.
“The time has come for policy to adjust,” Powell said. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
The dovish stance lifted the yen against the dollar, and the dollar-yen rate fell 0.30% to 143.95 on Monday's early trading.
The Bank of Japan's governor had hinted Friday that more hikes in interest rates may be coming if inflation stays on course to sustainably hit the 2% target. He also mentioned the bank was closely monitoring the recent gyrations in stock prices and currencies.
Japan’s benchmark Nikkei 225 slipped 1.1% in morning trading to 37,944.68 due to the stronger currency.
Hong Kong’s Hang Seng index added 1.0% to 17,786.31 while the Shanghai Composite index dipped 0.1%, at 2,852.34.
Australia’s S&P/ASX 200 rose 0.7% to 8,076.10. South Korea’s Kospi shed 0.2% to 2,695.24.
On Friday, the S&P 500 rose 1.1% to 5,634.61 after the index pulled within 0.6% of its all-time high set last month and has clawed back virtually all of its losses from a brief but scary
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