Asian Stocks Decline Following US Fed Rate Cut

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Finance Berita

FED,Interest Rates,Asian Markets

Asian stock markets experienced a decline on Thursday following a downturn in US markets. The Federal Reserve's decision to reduce its key interest rate by 0.25% contributed to the negative sentiment.

Shares skidded Thursday in Asia after U.S. stocks tumbled to one of their worst days of the year when the Federal Reserve cut its key rate by a quarter of a percentage point to between 4.25% and 4.5%, as expected. Other major central banks have stood pat this week, with the Bank of Japan opting Thursday to keep its benchmark rate at 0.25%. That decision, which was expected, pushed the dollar higher against the Japanese yen.

Asian markets fell, but generally by less than 2%, with Tokyo's Nikkei 225 falling 0.7% to 38,806.70. The dollar was trading at 155.24 yen by midday Thursday, up from 154.79 yen. A weaker yen tends to push prices higher in Japan, which depends heavily on imports, and that in turn raises pressure on the Bank of Japan to raise rates

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