Asian stocks mixed after Fed keeps interest rates unchanged

Japan's Nikkei 115 index performance

As expected, the Fed decided to keep interest rates unchanged at 4.25% - 4.5% at its May policy meeting that ended on Wednesday (May 7). Speaking at a press conference afterward, Fed Chairman Jerome Powell acknowledged the growing obstacles to the Fed's dual mandate; at the same time, he warned that if the tariffs announced by Mr. Trump were maintained, they could lead to a slowdown in economic growth and higher inflation in the long term.

“My intuition tells me that uncertainty about the economy is extremely high. Downside risks have increased,” Powell said, adding, “the risks of higher unemployment and higher inflation have increased, but they have not yet materialized. … And that tells me more than my intuition.”

Investors are also closely monitoring information related to the upcoming meeting between US and Chinese officials. Accordingly, US Treasury Secretary Scott Bessent and his Chinese counterpart will meet in Switzerland this week to address trade and economic issues.

However, speaking at the White House on Wednesday, Mr. Trump declared that he would not consider reducing the 145% tariff on China to promote trade war negotiations with the country.

The cautious sentiment is still prevailing, causing Asia-Pacific stock markets to fluctuate in opposite directions on Thursday morning (May 8).

In Japan, the Nikkei 225 opened up 0.28%, while the Topix was flat. In South Korea, the Kospi and Kosdaq indexes both opened in the green, up 0.36% and 0.61%, respectively.

However, in the Australian market, the S&P/ASX 200 index decreased by 0.14%.

Hong Kong's Hang Seng Index futures stood at 22,466, above the HSI's last close of 22,691.88.

Futures on major U.S. stock indexes were down only slightly after the Fed left interest rates unchanged, even as it highlighted the risks of rising inflation and unemployment. Futures on the S&P 500, Nasdaq-100 and Dow Jones Industrial Average all fell 0.1%.

In overnight trading in the US, all three major stock indexes closed higher: the S&P 500 rose 0.43% to 5,631.28 points; the Nasdaq Composite rose 0.27% to 17,738.16 points and the Dow Jones rose 284.97 points, or 0.70%, to close at 41,113.97.

Source: https://thoibaonganhang.vn/chung-khoan-chau-a-bien-dong-trai-chieu-sau-khi-fed-giu-nguyen-lai-suat-163848.html