On Wednesday morning (24 September, 9:26 AM, GMT+7, Bangkok time), most indices in Asia Pacific declined, in line with trends seen on Wall Street, following remarks from U.S. Federal Reserve Chair Jerome Powell regarding stock value and interest rate path.
Powell stated the weakening job market has become a priority over persistent inflation, which influenced the Fed’s decision to cut its key interest rate last week. He highlighted the challenge of balancing stable prices and low unemployment, describing the current environment as “two-sided risks,” and implying more rate cuts are possible if economic conditions worsen.
The Fed chair also noted that equity and asset prices are “fairly highly valued,” but said current market conditions do not pose elevated financial stability risks. Despite stocks climbing after the rate cut, his comments on high valuations led to a market dip.
Separately, Australia’s annual CPI rose 3.0% in August, slightly above forecasts of 2.9%, and up from 2.8% in July. Monthly inflation was flat as electricity prices fell 6.3% with new government rebates, and holiday travel costs dropped 3.5%. The trimmed mean core inflation rate eased to 2.6% annually, while a measure excluding volatile items increased to 3.4%.
Japan’s NIKKEI decreased by 0.38% to 45,321.84. South Korea’s KOSPI slumped by 1.01% to 3,450.9, and Australia’s ASX 200 contracted by 1.02% to 8,756.1.
As for stocks in China, Shanghai’s SSEC climbed by 0.07% to 3,824.45. Hong Kong’s HSI rose by 0.15% to 26,198.81, while Shenzhen’s SZI shrank by 0.38% to 13,070.67.
The U.S. stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) slid by 0.19% to 46,292.78. NASDAQ plummeted by 0.95% to 22,573.47, and S&P 500 lost 0.55% to 6,656.92. VIX surged by 3.35% to 16.64.
As for commodities, oil prices settled higher on Tuesday as a stalled agreement to resume exports from Iraq’s Kurdistan eased investor concerns about a potential increase in global supply. Brent crude finished the session up $1.06, or 1.6%, at $67.63 a barrel, while U.S. West Texas Intermediate crude gained $1.13, or 1.8%, to close at $63.41.
This morning, Brent futures increased 14 cents, or 0.21%, to $67.77 a barrel, and the West Texas Intermediate (WTI) grew 17 cents, or 0.27%, to $63.58 per barrel.
Meanwhile, gold futures dropped 0.75% to $3,787.2 per Troy ounce.
