On Thursday morning (11 December, 9:27 AM, GMT+7, Bangkok time), most major indices in Asia Pacific increased after the U.S. Federal Reserve announced its third rate cut this year, reducing the Federal Funds rate by 25 basis points to a range of 3.5%-3.75%.
Fed Chair Jerome Powell remarked that the current rate level allows the Fed to observe how the economy develops, while also citing tariffs imposed by President Donald Trump as a factor driving inflation.
Alongside the rate decision, the central bank revealed plans to purchase $40 billion in Treasury bills starting Friday, which pushed short-term Treasury yields lower. The Fed’s statement also omitted references to a “low” labor market, hinting at an increased focus on supporting economic growth over inflation management.
South Korea’s KOSPI rose by 0.43% to 4,152.72. Australia’s ASX 200 grew by 0.36% to 8,610.40, while Japan’s NIKKEI dropped by 0.41% to 50,393.39.
As for stocks in China, Shenzhen’s SZI surged by 0.26% to 13,351.16. Hong Kong’s HSI advanced by 0.43% to 25,649.45, while Shanghai’s SSEC declined by 0.14% to 3,895.13.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) jumped by 1.05% to 48,057.75. NASDAQ expanded by 0.33% to 23,654.15, and S&P 500 gained 0.67% to 6,886.68. VIX slumped by 6.85% to 15.77.
As for commodities, oil prices settled higher on Wednesday, as U.S. authorities had taken control of an oil tanker near Venezuela, stoking concerns over near-term supply. Brent crude futures increased by 27 cents, or 0.4%, finishing at $62.21 a barrel, while U.S. West Texas Intermediate crude advanced 21 cents, or 0.4%, to settle at $58.46 per barrel.
This morning, Brent crude futures added 25 cents, or 0.40%, to $62.46 per barrel, and the WTI rose 29 cents, or 0.50%, to $58.75 per barrel.
Meanwhile, gold futures escalated 0.84% to $4,260.20 per Troy ounce.
