Stock market today: Asian markets follow Wall Street swings after Fed keeps interest rates high

Apr 30, 2024, 11:31 PM | Updated: May 1, 2024, 10:40 pm

HONG KONG (AP) — Asian markets wobbled in early Thursday trading after U.S. stocks swung to a mixed finish with the Federal Reserve delaying cuts to interest rates.

U.S. futures surged and oil prices were higher.

Tokyo’s Nikkei 225 index opened with a decline, then climbed 0.1% to 38,299.71.

The Japanese yen surged as much as 2% in early Asia hours Thursday, driven by speculations of another round of yen-buying intervention by Japanese authorities and a weaker U.S. dollar following the Fed meeting. Later, the yen reversed its course and erased the previous gains. By midday, the dollar was trading at 156.04 yen, up from 154.91 yen.

“As expected, Japan’s Ministry of Finance, via the Bank of Japan, was back selling U.S. dollars to stabilize the yen. Indeed, the Japanese government is digging into their sizable 1.2-trillion-USD war chest, looking to take profit on the dollar they bought back in 2000,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary. He said the hope was to stabilize yen around 155-157 to the dollar.

In South Korea, the Kospi edged 0.1% lower to 2688.80, after official data showed the country’s consumer prices in April reached 2.9% year on year, a slower pace compared to the data in March.

Hong Kong’s Hang Seng index added 2.3% to 18,178.43. Other markets in China remained closed for the Labor Day holiday.

Elsewhere, Australia’s S&P/ASX 200 advanced 0.5% to 7,603.80.

On Wednesday, the S&P 500 fell 0.3% to 5,018.39 after the Fed held its main interest rate at its highest level since 2001, just as markets expected. The index had rallied as much as 1.2% in the afternoon before giving up all the gains at the end of trading.

The Dow Jones Industrial Average rose 0.2% to 37,903.29, and the Nasdaq composite lost 0.3% to 15,605.48.

On the downside for financial markets, Federal Reserve Chair Jerome Powell said out loud the fear that’s recently sent stock prices lower and erased traders’ hopes for imminent cuts to interest rates: “In recent months, inflation has shown a lack of further progress toward our 2% objective.” He also said that it will likely take “longer than previously expected” to get confident enough to cut rates, a move that would ease pressure on the economy and investment prices.

At the same time, though, Powell calmed a fear swirling in the market that inflation has remained so high that additional hikes to rates may be necessary.

“I think it’s unlikely that the next policy rate move will be a hike,” he said.

The Fed also offered financial markets some assistance by saying it would slow the pace of how much it’s shrinking its holdings of Treasurys. Such a move could grease the trading wheels in the financial system, offering stability in the bond market.

Traders themselves had already downshifted their expectations for rate cuts this year to one or two, if any, after coming into the year forecasting six or more. That’s because they saw the same string of reports as the Fed, which showed inflation remaining stubbornly higher than forecast this year.

Powell had already hinted rates may stay high for awhile. That was a disappointment for Wall Street after the Fed earlier had indicated it was penciling in three cuts to rates during 2024.

One report from the Institute for Supply Management said the U.S. manufacturing sector unexpectedly fell back into contraction last month. A separate report said U.S. employers were advertising slightly fewer jobs at the end of March than economists expected.

The hope on Wall Street has been that a cooldown could help prevent upward pressure on inflation. The downside is that if it weakens too much, a major support for the economy could give out.

In energy trading, benchmark U.S. crude ended three days of decline and rose 45 cents to $79.45 a barrel. Brent crude, the international standard, was up 44 cents to $83.88 a barrel.

In currency trading, the euro cost $1.0713, up from $1.0709.

United States News

Boeing is now aiming for its first astronaut launch at the beginning of June. Officials for the com...

Associated Press

Boeing’s 1st astronaut flight now set for June after a review of small leak on new capsule

Boeing is now aiming for its first astronaut launch in early June, after spending weeks struggling with more problems on the space capsule.

3 hours ago

Associated Press

Lawsuit filed in the death of dancer with a peanut allergy who died after eating mislabeled cookie

WATERBURY, Conn. (AP) — The estate of a young dancer who died after eating a mislabeled cookie containing peanuts has filed a wrongful death lawsuit, claiming the failure to properly label the package was grossly negligent. Órla Ruth Baxendale, 25, died Jan. 11 after eating a Florentine cookie sold by grocery retailer Stew Leonard’s and […]

3 hours ago

Colorado River settlement center of new Navajo Nation push...

Associated Press

Tribes say their future is at stake as they push for Congress to consider Colorado River settlement

Navajo officials are celebrating the signing of legislation outlining a proposed Colorado River settlement that would ensure water rights.

4 hours ago

Associated Press

Lara Trump touts RNC changes and a 2024 presidential victory for Trump in North Carolina

GREENSBORO, N.C. (AP) — To a room full of Republicans from across North Carolina on Friday, former President Donald Trump railed against the Biden administration and vowed to win in the state for a third time — all over a speaker phone call after his son Eric Trump dialed him on stage. “I just want […]

4 hours ago

Associated Press

Nevada voter ID initiative can appear on 2024 ballot with enough signatures, state high court says

ELKO, Nev. (AP) — An initiative that would amend the Nevada Constitution to require that voters show photo identification at the polls can appear on the 2024 ballot as long as organizers collect enough signatures, the state Supreme Court ruled Friday. Organizers must gather just over 100,000 valid signatures by June 26 for it to […]

4 hours ago

Associated Press

Florida priest accused of biting woman who grabbed Holy Communion wafers during Mass

ST. CLOUD, Fla. (AP) — The Diocese of Orlando is defending a Catholic priest accused of biting a woman who tried to grab Holy Communion wafers during Mass at a central Florida church. The confrontation occurred Sunday afternoon at St. Thomas Aquinas Catholic Church in St. Cloud. Police have forwarded a report to prosecutors accusing […]

5 hours ago

Sponsored Articles


Day & Night Air Conditioning, Heating and Plumbing

Beat the heat, ensure your AC unit is summer-ready

With temperatures starting to rise across the Valley, now is a great time to be sure your AC unit is ready to withstand the sweltering summer heat.



Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.


Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

Stock market today: Asian markets follow Wall Street swings after Fed keeps interest rates high