CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Thursday, following the mixed cues from Wall Street overnight, after the US Fed delivered a widely expected quarter point interest rates cut to 4.0 percent, citing a shift in the balance of risks. The latest projections from Fed officials also suggest they expect the central bank to lower rates two more times this year. Asian markets closed mixed on Wednesday.
Traders may have been disappointed that Fed officials don't appear eager to cut interest aggressively, with only newly sworn in Fed Governor Stephen Miran preferring to lower rates by half a point at the meeting.
The central bank's next monetary policy meeting is scheduled for October 28-29, with CME Group's FedWatch tool currently indicating an 89.1 percent chance the Fed will lower rates by another quarter point.
The Australian market is trading notably lower on Thursday, extending the losses in the previous session, following the mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling well below the 8,800 level, with weakness across most sectors led by mining and energy stocks.
The benchmark S&P/ASX 200 Index is losing 51.60 points or 0.59 percent to 8,766.90, after hitting a low of 8,737.50 earlier. The broader All Ordinaries Index is down 45.30 points or 0.50 percent to 9,049.60. Australian stocks ended notably lower on Wednesday.
Among major miners, Rio Tinto and BHP Group are losing almost 1 percent each, while Fortescue is edging down 0.4 percent. Mineral Resources is gaining more than 1 percent.
Oil stocks are mostly lower. Beach energy is losing almost 4 percent, Origin is declining almost 2 percent and Woodside Energy is tumbling almost 6 percent, while Santos is plunging almost 12 percent after the XRG Consortium dropped its takeover bid for the energy company.
In the tech space, Afterpay owner Block is gaining more than 2 percent, Zip is edging up 0.3 percent and Appen is adding almost 2 percent, while Xero is edging down 0.2 percent and WiseTech Global is losing almost 1 percent.
Among the big four banks, Commonwealth Bank is losing almost 2 percent and ANZ Banking edging down 0.2 percent, while National Australia Bank and Westpac are edging up 0.1 to 0.5 percent each.
Among gold miners, Evolution Mining is losing almost 2 percent, while Gold Road Resources and Resolute Mining are edging down 0.4 percent each. Newmont is adding almost 1 percent. Northern Star Resources is flat.
In the currency market, the Aussie dollar is trading at $0.665 on Thursday.
The Japanese market is trading significantly higher on Thursday, reversing the losses in the previous session, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving above the 45,250 level, with gains across most sectors led by exporters and technology stocks.
The Bank of Japan meets on Friday to decide on interest rates but no change in policy is expected due to uncertainties over the domestic political situation and the effects of U.S. tariffs.
The benchmark Nikkei 225 Index closed the morning session at 45,277.43, up 487.05 points or 1.09 percent, after touching a high of 45,296.21 earlier. Japanese shares ended modestly lower on Wednesday.
Market heavyweight SoftBank Group is gaining almost 1 percent and Uniqlo operator Fast Retailing is edging up 0.3 percent. Among automakers, Toyota is edging up 0.4 percent, while Honda is edging down 0.2 percent.
In the tech space, Advantest is gaining more than 2 percent, Tokyo Electron is advancing more than 4 percent and Screen Holdings is surging almost 5 percent.
In the banking sector, Mizuho Financial and Mitsubishi UFJ Financial are edging up 0.1 to 0.3 percent each, while Sumitomo Mitsui Financial is edging down 0.1 percent.
Among the major exporters, Mitsubishi Electric is edging up 0.2 percent and Sony is gaining more than 1 percent, while Canon and Panasonic are adding almost 1 percent each.
Among other major gainers, Resonac Holdings is soaring almost 11 percent, while Lasertec, Disco and Kirin Holdings are gaining more than 3 percent each.
Conversely, Tokyo Electric Power is tumbling more than 6 percent and Tokyo Gas is losing almost 5 percent.
In the currency market, the U.S. dollar is trading in the lower 147 yen-range on Thursday.
Elsewhere in Asia, China, South Korea, Indonesia and Taiwan are higher by between 0.2 and 1.0 percent each. New Zealand and Malaysia are down 0.8 and 0.6 percent, respectively. Hong Kong and Singapore are relatively flat.
On Wall Street, stocks turned in a lackluster performance throughout much of the session on Wednesday before seeing substantial volatility in afternoon trading following the Federal Reserve's highly anticipated monetary policy announcement.
The major averages showed wild swings back and forth across the unchanged line before eventually closing mixed. While the Dow climbed 260.42 points or 0.6 percent to 46,018.32, the S&P 500 edged down 6.41 points or 0.1 percent to 6,600.35 and the Nasdaq fell 72.63 points or 0.3 percent to 22,261.33.
The major European markets also ended the day mixed. While the French CAC 40 Index slid by 0.4 percent, the German DAX Index and the U.K.'s FTSE 100 Index both crept up by 0.1 percent.
Crude oil prices moved lower on Wednesday even as drone strikes on Russian ports and refineries disrupting Russian oil supply have increased supply side concerns. WTI Crude Oil for October delivery was last seen trading down by $0.53 or 0.82 percent at $63.99 per barrel.
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