Australia Markets closed

Asian Markets Rise After Powell Signals Rate Cut - Asian markets rose in morning trade in Asia after U.S. Federal Reserve Jerome Powell signaled an interest rate cut as soon as this month.

China’s Shanghai Composite and the Shenzhen Component were up 0.3% and 0.6% respectively by 10:45 PM ET (02:45 GMT). Hong Kong’s Hang Seng Index gained 1.1%.

Japan’s Nikkei 225 traded 0.3% higher. Bandai Namco made headlines after the game maker was chosen for inclusion in Japan’s Nikkei 225 Stock Average. The stock will join the blue chip gauge on Aug 1.

Meanwhile, shares in Nintendo jumped following an announcement by the company that it would soon launch Nintendo Switch Lite, a cheaper, handheld version of its hugely popular gaming device Switch.

South Korea’s KOSPI was up 1.2%.

Down under, Australia’s ASX 200 rose 0.2%.

Overnight, Powell hinted at an interest rate cut as he noted that the negative impact of the Sino-U.S. trade war overshadowed the healthy labor market. The better-than-expected jobs report was “great news,” he said, but wages did not rise enough to trigger much inflation, which he believes is still too low.

He also said U.S. President Donald Trump does not have the authority to fire him and he would not step down if the President asked him to do so.

The Fed chief is due back later today when he’ll appear before the Senate Banking Committee. On the data front, the U.S. core consumer price index and producer prices are set to be released on Thursday and Friday respectively.

Related Articles

Nintendo shares jump on imminent launch of Switch Lite

Australia's Westpac, ANZ, NAB slapped with tougher capital requirements

Japan Post Insurance shares sink to life-time low on sales misconduct