Nikkei 225 slid 1.1% to 37,944.68, Hang Seng index gained 1.0% to 17,786.31, the Shanghai Composite index slipped 0.1% to 2,852.34, S&P/ASX 200 added 0.7% to 8,076.10, while Kospi declined 0.2% to 2,695.24
Asian stocks were mixed Monday after U.S. stocks rallied close to their records on the expectation the Fed will start cutting interest rates soon to help the economy.
U.S. futures edged lower. Oil prices gained as the conflict in the Middle East escalated, triggering potential supply worries among the markets.
On Friday, Fed Chair Jerome Powell said the time had come to reduce the main interest rate from a two-decade high.
The time has come for policy to adjust, Powell said. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
The dovish stance lifted the yen against the dollar, and the dollar-yen rate declined 0.30% to 143.95 on Monday’s early trading.
The Bank of Japan’s governor had indicated Friday that more hikes in interest rates may be coming if inflation stays on course to sustainably hit the 2% target. He also mentioned the bank was closely monitoring the recent variations in stock prices and currencies.
Japan’s benchmark Nikkei 225 slid 1.1% in morning trading to 37,944.68 due to the stronger currency.
Hong Kong’s Hang Seng index gained 1.0% to 17,786.31 while the Shanghai Composite index slipped 0.1% to 2,852.34.
Australia’s S&P/ASX 200 added 0.7% to 8,076.10. South Korea’s Kospi declined 0.2% to 2,695.24.
On Friday, the S&P 500 gained 1.1% to 5,634.61 after the index pulled within 0.6% of its all-time peak set last month and has clawed back virtually all of its losses from a brief but scary summertime decline.
