Stock Market Live Updates: Powell’s caution on interest rates drives Asian markets lower

Asian equities experience a downturn following Jerome Powell’s caution regarding the possibility of further interest rate hikes, which has subdued the enthusiasm in both stocks and bonds, leading investors to favour the dollar.

The Japanese Nikkei 225 index witnessed a decline of 1.12%, equivalent to 366.55 points, settling at 32,279.91. Concurrently, the TOPIX index showed a 0.82% drop, translating to a decrease of 19.16 points to reach 2,315.22. South Korea’s KOSPI experienced a decline of 1.09%, shedding 26.36 points to close at 2,400.72, while Australia’s S&P ASX 200 also registered a 0.56% decrease, with a loss of 39.60 points, ending the day at 6,975.30 points.

In parallel, the Dow Jones Industrial Average retreated by 220.33 points, equivalent to a 0.65% decline, to conclude at 33,891.94, and the S&P 500 saw a loss of 35.43 points, representing a 0.81% decrease, closing at 4,347.35. Additionally, the Nasdaq Composite reported a decrease of 128.97 points, reflecting a 0.94% drop, with a closing value of 13,521.45.

The yield on Treasury bonds increased on Thursday, with the two-year yield surpassing 5%, and both the five-year and 10-year rates rising by more than 10 basis points.

Federal Reserve Chair Powell’s remarks, which implied a more hawkish stance, conveyed that central bank officials are ready to tighten monetary policy further if necessary.