{"id":43659,"date":"2024-12-19T06:12:13","date_gmt":"2024-12-19T06:12:13","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/asian-stocks-crash-after-us-feds-hawkish-signals-nikkei-slips-1-kospi-down-1-8\/"},"modified":"2024-12-19T06:12:13","modified_gmt":"2024-12-19T06:12:13","slug":"asian-stocks-crash-after-us-feds-hawkish-signals-nikkei-slips-1-kospi-down-1-8","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/asian-stocks-crash-after-us-feds-hawkish-signals-nikkei-slips-1-kospi-down-1-8\/","title":{"rendered":"Asian stocks crash after US Fed\u2019s hawkish signals: Nikkei slips 1%, Kospi down 1.8%"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Asian equities slid sharply on Thursday as investors reacted to hawkish signals from the US Federal Reserve, which indicated a slower pace of easing in 2025 due to persistent inflationary pressures. <\/p>\n

While the rate cut decision was in with expectations<\/a>, market sentiment soured after the Fed signalled it plans only two rate cuts in 2025<\/a>, down from the four previously projected cuts.<\/p>\n

The Fed’s shift lifted the US Dollar Index to a two-year high and pushed benchmark US Treasury yields to a seven-month peak, while gold remained below $2,600 per ounce.<\/p>\n

Asian stocks feel the heat<\/h2>\n

Market sentiments across the Asian continent were dampened as the Fed forecasted only two more reductions next year.<\/p>\n

Japan’s Nikkei dropped 1% in early trade, with the yen hovering near a one-month low against the dollar as markets.<\/p>\n

After the lunch break, Investors weighed the Bank of Japan’s decision to maintain its policy rate at 0.25% for the third consecutive meeting. <\/p>\n

The Nikkei 225 narrowed its losses after the lunch break, trading 0.63% lower, while the broader Topix index was down 0.49%.<\/p>\n

Following the announcement, the Japanese yen softened to 155.40 against the dollar, down from 154.60 before the decision.<\/p>\n

Hong Kong’s Hang Seng fell nearly 1%, driven by selling in financial and technology stocks.<\/p>\n

The Hong Kong Monetary Authority (HKMA) implemented a 25-basis-point interest rate cut on Thursday, aligning with the U.S. Federal Reserve’s move. <\/p>\n

In China, the Shanghai Composite declined 0.3% to 3,371, following reports that US authorities may ban China’s TP-Link Technology Co over national security concerns. <\/p>\n

However, losses were limited by optimism surrounding Beijing’s anticipated plans for increased fiscal spending in 2025, which buoyed investor sentiment.<\/p>\n

South Korea\u2019s Kospi was back in the red on Thursday after showing small recovery on Wednesday. <\/p>\n

The index tumbled 1.6%, led by losses in heavyweight technology stocks.<\/p>\n

US markets on Wednesday<\/h2>\n

Overnight in the US, the Dow Jones Industrial Average plunged 1,123.03 points, or 2.58%, to close at 42,326.87, marking its first 10-day losing streak since 1974. <\/p>\n

The S&P 500 dropped 2.95% to 5,872.16, while the Nasdaq Composite fell 3.56% to 19,392.69.<\/p>\n

The sell-off followed the Federal Reserve’s decision to cut its overnight borrowing rate by 25 basis points to a target range of 4.25% to 4.5%. <\/p>\n

With the widely expected rate cut delivered, the spotlight of the Federal Reserve’s announcement shifted to its updated economic projections.<\/p>\n

The latest forecasts indicate interest rates will range between 3.75% and 4.0% by the end of 2025, compared to the previously projected range of 3.25% to 3.50% in September.<\/p>\n

The adjustment reflects expectations of hotter inflation in 2025, with consumer price growth now projected at 2.5%, up from the 2.1% forecast in September.<\/p>\n

Fed Chair Jerome Powell, speaking during the post-meeting press conference, emphasised that the central bank is seeking additional progress on inflation before advancing with further rate cuts.<\/p>\n

The post Asian stocks crash after US Fed’s hawkish signals: Nikkei slips 1%, Kospi down 1.8%<\/a> appeared first on Invezz<\/a><\/p>\n

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(Originally posted on : Invezz ) Asian equities slid sharply on Thursday as investors reacted to hawkish signals from the US Federal Reserve, which indicated a slower pace of easing in 2025 due to persistent inflationary pressures. While the rate cut decision was in with expectations, market sentiment soured after the Fed signalled it plans […]<\/p>\n","protected":false},"author":3947362387,"featured_media":43660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[39],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43659"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362387"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=43659"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43659\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/43660"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=43659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=43659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=43659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}