The Fed reduced its benchmark rate by 25 basis points to 4.00-4.25%, marking its first cut since December. Alongside, it projected perhaps two more reductions before year-end.
Japan immediately stood out, with the Nikkei 225 climbing to fresh record highs. The weaker yen added fuel to Japan’s exporters, while tech and energy sectors led advances. Meanwhile, Korean markets moved up in concert, buoyed in part by renewed enthusiasm around AI and semiconductors. In China, indices such as CSI 300 were also reaching decade highs, though regulatory tensions around U.S.-China tech trade remain a lurking concern.
In emerging Asia more broadly, there’s a dual narrative of optimism tempered by caution. On one hand, equity indices rose strongly: Taiwan and South Korea benefited from the easing U.S. rate environment and sharper tech demand. On the other, many currencies came under pressure. The Philippine peso and South Korean won weakened, Indonesia’s rupiah dropped to its lowest in some time, and Indonesia itself surprised markets by cutting its rates, raising questions about central bank discipline and the risk of capital outflows.
Australia and New Zealand bucked the regional rally. Australia’s gains were undermined by a sharp drop in its energy sector and indications of a softening labour market. New Zealand posted a much deeper concern with its GDP contracting more than expected, pointing to domestic demand weaknesses that could force more aggressive easing by its central bank.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
