Thursday, October 31, 2024, at the Bank of Japan (BOJ) Head Office in Tokyo. The Bank of Japan left its base interest rate unchanged.
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Asia-Pacific markets fell on Thursday following losses on Wall Street, with the Dow Jones Industrial Average hitting a new yearly low.
The Federal Reserve kept its key interest rate unchanged at 3.5% to 3.75%, with Chairman Jerome Powell watering down his expectations for a rate cut, saying inflation has not fallen as much as “expected.”
The producer price index, which measures changes in wholesale prices, rose 0.7% in February, well above the 0.3% forecast by economists compiled by Dow Jones.
Nevertheless, the US central bank’s ‘dot plot’ still predicts further rate cuts in 2026 and 2027, although the timing is uncertain.
The Iran war continues to fuel energy insecurity. Brent crude oil futures, the international standard, rose 3.83% to settle at $107.38 per barrel.
U.S. crude oil prices were trading similarly high, with West Texas Intermediate futures ending slightly higher at $96.32 per barrel.
Investors in Asia are closely watching the Bank of Japan’s decision, which is expected to keep interest rates unchanged at 0.75%.
Korean Kospi fell 2.56%, leading the decline in Asia after being the region’s top gainer on Wednesday, while the small-cap Kosdaq’s decline was smaller at 1.73%.
Semiconductor giants Samsung Electronics and SK Hynix fell more than 3%.
Japanese Nikkei Stock Average fell 2.47%, and the comprehensive TOPIX fell 1.82%.
Australia’s S&P/ASX 200 opened the day 1.5% lower.
Hong Kong’s Hang Seng Index futures stood at 25,479, below the HSI’s last closing price of 26,025.42.
In U.S. overnight trading, the 30-stock Dow Jones Industrial Average fell 1.63% to close at $46,225.15, a new low this year. The index also ended below its 200-day moving average.
The S&P 500 fell 1.36% and the Nasdaq Composite fell 1.46%.
—CNBC’s Sean Conlon, Pia Singh and Jeff Cox contributed to this report.
