Asian stock markets mostly saw gains today, though some remained closed due to local holidays.
Asian stock markets mostly edged higher on Thursday after the U.S. Federal Reserve decided to hold interest rates steady. However, some regional markets remained closed due to the Lunar New Year holiday.
Stock Market Performance Across Asia
Japan’s Nikkei 225 climbed 0.2% to 39,499.10, while Australia’s S&P/ASX 200 advanced 0.6% to 8,493.70. Investors were closely watching corporate developments, with SoftBank Group slipping 1.2% following reports of possible investments in OpenAI. Meanwhile, Nissan shares jumped 1.3% after confirming plans to scale back U.S. production.
Wall Street Reacts to Fed’s Decision
On Wednesday, the S&P 500 dipped 0.5% to 6,039.31, the Dow Jones Industrial Average declined 0.3% to 44,713.52, and the Nasdaq Composite dropped 0.5% to 19,632.32. The Fed’s decision to keep rates unchanged signals a cautious approach, with policymakers waiting for further signs of inflation easing before making adjustments.
Fed Chair Jerome Powell stated that while rate cuts could be on the table if inflation slows or the labour market weakens, the economy currently remains stable. Analysts believe the Fed’s stance reflects confidence in the economic outlook, even as Wall Street favours lower rates to stimulate borrowing and corporate growth.
AI Sector Faces Uncertainty
Investor concerns over the artificial intelligence sector persisted. A Chinese company, DeepSeek, claimed to have developed a competitive AI model without relying on high-end chips. This raised questions about future investments in AI infrastructure, including costly semiconductor technology.
Nvidia, a key player in AI, saw its stock plunge 4% on Wednesday after a volatile week. The stock had initially plummeted 17% on Monday before rebounding 9% on Tuesday. Nvidia’s performance has heavily influenced the S&P 500’s rally, contributing significantly to its strong returns over the past two years.
Corporate Winners and Losers
Several major corporations saw notable stock movements:
- Starbucks surged 8.1% after exceeding quarterly profit expectations.
- T-Mobile US gained 6.3% after reporting strong earnings and forecasting up to 6 million new postpaid customers in 2024.
- Trump Media & Technology Group (TMTG) saw its stock rise 6.8% after announcing plans to enter the financial services sector in partnership with Charles Schwab.
Other Market Movements
In commodities, U.S. crude oil prices increased by 9 cents to $72.71 per barrel, while Brent Crude remained steady at $76.58 per barrel. The dollar weakened slightly against the yen, falling to 154.60 from 155.24, while the euro edged up to $1.0419.
