Asian markets fell into early trading on Thursday, following the Fed's first cut of more than a decade.
Stocks slipped on Wall Street after the Fed cut interest rates by 25 basis points and failed to signal whether more cuts were on the horizon.
Meanwhile, US-China trade negotiations were concluded in Shanghai, without any major breakthrough. China agreed to buy more US agricultural products, and the White House said talks are expected to continue in Washington in September. The ongoing trade war has hurt China's economy, although a report on Thursday found that China's factory activity improved in June, even though it was still contracting.
was flat, while Hong Kong's Hang Seng Index
and Shanghai composite
each fell about 0.7%. South Korea's Kospi
was flat, while benchmark indices in Taiwan
posted modest losses. Australia's S & P / ASX 200
Among individual stocks was electronics manufacturer TDK
6762, + 7.67%
increased in Tokyo trade with Nintendo
7974, + 3.32%
and Mitsubishi UFJ
8306, + 2.98%
. In Hong Kong, casino operator Galaxy Entertainment
fell, as did AIA Group
. SK Hynix
000660, + 1.56%
increased in South Korea while Samsung
fell slightly. BHP
and Rio Tinto
dropped in Australia.
On Wall Street, the S&P 500 Index
had its worst day in two months, falling 1.1% to 2,980.38. The index had reached a high peak on Friday. Dow Jones industrial average
lost 1.2% to 26,864.27. Nasdaq composite
dropped 1.2% to 8 175.42.
The Fed hopes the interest rate cut will counteract threats to the US economy, ranging from uncertainties caused by the nation's trade disputes to chronic low inflation and a dampening global growth outlook.
Fed officials had signaled that they were willing to take action to help boost US growth, facing threats from a customs war with China.
Wednesday's cut was the first since December 2008 during the global financial crisis, when the Fed cut its course to a record low near zero and held it there until 2015. After that, the Fed continued with nine quarter-point increases from December 2015 to December 2018.
The 10-year Treasury return fell to 2.01% from 2.06% late Tuesday, a big move. The two-year return, which is more influenced by the Fed's movements, rose sharply to 1.86% from 1.83%.
fell 68 cents to $ 57.90 in electronic commerce on the New York Mercantile Exchange. The contract got 53 cents on Wednesday to close at $ 58.58. Burnt crude oil
used to price international oils, lost 70 cents to $ 64.53 per barrel in London. It rose 42 cents last increase to $ 65.05.
USDJPY, + 0.37%
gained 109.13 yen from Wednesday's 108.78 yen.