By Fed’s Hawkish Hold Dampens Sentiment
Asian markets remained largely subdued on Thursday, digesting the Federal Reserve’s decision to keep rates unchanged but signaling potential hikes ahead due to persistent inflation concerns.
Australia Leads Regional Gains
Australia’s ASX 200 index climbed 0.8% to a record 8,515.70 points, bolstered by speculation that the RBA will begin easing rates in February following softer inflation readings. However, core inflation staying above the RBA’s target range tempered enthusiasm about prolonged rate cuts.
AI-Driven Losses Persist in Tech
Japanese tech stocks remained under pressure, with SoftBank Group Corp. shedding over 1% amid reports of a $25 billion investment in OpenAI. The news heightened concerns over aggressive AI spending, especially after China’s DeepSeek AI model showcased superior efficiency, rattling global tech markets.
Global Trade Concerns Linger
Uncertainty surrounding U.S. President Donald Trump’s anticipated trade tariffs added to investor caution, as markets await details on potential policies that could disrupt global trade.
Quiet Markets During Lunar New Year
Regional trading volumes remained muted as key markets in China, South Korea, Hong Kong, Taiwan, and Singapore were closed for Lunar New Year holidays.