Asian markets set for mixed open as Fed signals December rate cut not certain

Asia-Pacific markets were poised for a mixed open on Thursday after US Federal Reserve Chairman Jerome Powell indicated that a December interest rate cut was far from “a foregone conclusion”.

On Wednesday, the Fed cut the federal funds rate by 25 basis points, as expected, to 3.75%-4%.

In Asia, investors will be closely watching the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping – the first face-to-face meeting between the two leaders in Trump’s second term.

South Korean markets will also be in focus after Seoul’s chief political adviser Kim Yong-bom reportedly released details of a trade deal with Washington.

South Korea will invest $200 billion in the U.S. with an annual cap of $20 billion a year, while the remaining $150 billion of the $350 billion total announced earlier this year will be used for shipbuilding cooperation, according to local media reports.

of Japan Nikkei 225 futures pointed to a weaker open for the market, with the Chicago futures contract at 51,075 and its Osaka counterpart at 51,020, compared with the previous close of 51,307.65.

of Australia S&P/ASX 200 started the day down 0.5%.

Hong Kong’s Hang Seng index was poised to rise after resuming trading after a holiday. HSI futures were at 26,598, higher than HSI’s last close of 26,346.14.

Overnight in the USA, on Dow Jones Industrial Average closed lower on Wednesday following Powell’s remarks after hitting a record high earlier in the session.

The Dow closed down 0.2% at 47,632.00, while S&P 500 ended marginally lower at 6,890.59.

However, Nasdaq Composite gained 0.55% to a fresh record close of 23,958.47, supported by a rise in Nvidia.

— CNBC’s Sean Conlon and Sarah Min contributed to this report.