Fed Signals Policy Pivot: Asia Markets React with Mixed Results

Asia-Pacific equity markets ended mostly mixed as investors digested the U.S. Federal Reserve's decision to end its interest-rate-hiking cycle and signal cuts for next year. The S&P/ASX 200 in Australia reached levels not seen since August 2021, while Japan's Nikkei 225 and Topix slipped as investors awaited the Bank of Japan's policy decision. South Korea's Kospi and Hong Kong's Hang Seng index rose, while China's CSI 300 index ended lower. Oil prices continued to rise after a larger-than-expected withdrawal from U.S. stockpiles. Australia's unemployment rate rose to its highest level since May 2022. Australian interest rate markets are now pricing in 50 basis points of cuts in 2024. The Japanese yen strengthened against a weaker dollar after the Fed's dovish stance. Citi highlighted stock opportunities in Argentina after a 50% currency devaluation. Jefferies expressed reservations about Novo Nordisk's stock, while other analysts remained bullish. The Dow Jones Industrial Average surged to a record high after the Fed's forecast for rate cuts. Federal Reserve Chair Jerome Powell stated that it's a good time for workers to find jobs and get solid wage increases, and that the Fed is willing to cut rates even without a recession.