Investing.com– Most Asian stocks rose in choppy trade on Thursday amid some cheer over an outsized interest rate cut by the Federal Reserve, while Japanese markets surged as the yen weakened before a Bank of Japan meeting.
Gains in regional markets were somewhat subdued following a weak overnight close on Wall Street, as optimism over a bumper 50 basis point rate cut by the Federal Reserve was offset by the central bank presenting a higher outlook for neutral rates. The outsized cut also raised some concerns over slowing economic growth.
U.S. stock index futures, however, rose sharply in Asian trade.
Japanese stocks rally as yen weakens post-Fed; BOJ awaited
Japan’s Nikkei 225 and TOPIX indexes vastly outperformed their regional peers on Thursday, rising between 2% and 2.8%.
Gains in local markets came tracking a softer yen, which weakened sharply from near nine-month highs after the Fed meeting. The yen was pressured by a surge in the dollar.
Japan’s stock rally also reflected some positioning before the conclusion of a BOJ meeting on Friday, where analysts are uncertain over another interest rate hike.
But a string of BOJ officials had offered up hawkish signals in the weeks leading up to Friday’s meeting, stating that the central bank will raise interest rates as inflation picks up.
Japanese consumer inflation is due on Friday and is set to offer more cues.
Asian stocks show middling reaction to Fed cut
Gains in Asian stocks were somewhat subdued on Thursday, even as the Fed cut rates sharply and signaled the beginning of an easing cycle.
