On Thursday, Asia-Pacific markets showed varied performance as investors speculated on a potential rate reduction by the U.S. Federal Reserve in the upcoming month. Meanwhile, attention was directed towards Australian markets, following news that the nation’s unemployment rate dropped to 4.2% on a seasonally-adjusted basis in July, matching economist expectations gathered by Reuters.
After Fed Rate Cut, Japan Nikkei
In Japan, the Nikkei 225 maintained its upward momentum, closing at a record high for the day. The market was buoyed by a rally and relief in technology stocks after the Bank of Japan clarified its stance on exchange-traded fund (ETF) holdings. Sectors showing strength included electrical appliances, precision instruments and pharmaceuticals. However, growth was dampened by a strong yen, which usually acts as a drag on the country’s export-heavy economy.
After Fed Rate Cut HONG KONG
HONG KONG (September 23, 2025) – Financial markets in the Asia-Pacific region were mixed and cautious on Tuesday as investors held their breath for a much-awaited interest rate decision from the US Federal Reserve. The prospect of a rate cut in some quarters fueled optimism, while local economic concerns and sector-specific headwinds created mixed trading scenarios.
After Fed Rate Cut India Nifty & Sensex
In contrast, India’s benchmark indices, the Sensex and Nifty, experienced a volatile session, paring early gains and closing in the red. Initial optimism over the expected Fed rate cut was overshadowed by concerns over the possibility of a hike in US H-1B visa fees, which hit the heavyweight IT sector hard. However, some buying was seen in banking and financial stocks on hopes of improved liquidity following a potential Fed rate cut.
After Fed Rate Cut Australia
In Australia, the S&P/ASX 200 posted modest gains, led by financials and materials. The positive sentiment was largely driven by expectations of a more dovish stance from the Fed, which could boost commodity prices and benefit Australia’s resource-rich economy. Healthcare and IT sectors also performed well, while consumer staples and real estate also fell.
After Fed Rate Cut, Chinese markets
Meanwhile, mainland Chinese markets posted a more subdued performance, with the Shanghai Composite Index trading sideways. Investor sentiment in China has remained tentative, grappling with domestic economic challenges that a potential Fed rate cut may not fully offset.
Across the region, there is a sense of cautious optimism. A rate cut by the Federal Reserve is seen as a positive catalyst for Asian markets, as it could weaken the US dollar, which could boost capital flows to emerging economies and lower borrowing costs for regional companies. This expectation has been a key driver of market activity in recent times.
However, this caution is being tempered by uncertainty surrounding the Fed’s future guidance. Investors will be closely watching the central bank’s statements for clues on the future path of monetary policy. Any hint of a more hawkish stance than expected could quickly dampen the current optimism.
Moreover, local factors are playing a key role in shaping market performance. As seen in India, specific domestic policies and regional vulnerabilities can easily outpace broader global trends. Today, the diverse trading patterns in Asia-Pacific emphasize the complex interplay of international monetary policy expectations and regional economic realities. As the world awaits the Fed’s announcement, expectations and to some extent prudence are likely to control market behavior.