TOKYO (AP) – Global shares mostly rose yesterday after the United States (US) Federal Reserve (Fed) opted not to cut interest rates for the first time since it began trying to help the economy through easier rates in September.
Some Asia-Pacific markets remained closed for the Lunar New Year holiday.
Investors remain uncertain over the outlook for the US economy and over what’s ahead from the administration of President Donald Trump.
France’s CAC 40 gained 0.3 per cent in early trading to 7,898.63, while Germany’s DAX edged up 0.3 per cent to 21,702.91. Britain’s FTSE 100 added 0.2 per cent to 8,572.78. US shares were set to drift higher with Dow futures up 0.4 per cent at 45,053.00. S&P 500 futures rose 0.5 per cent to 6,097.00.
In Asia, Japan’s benchmark Nikkei 225 rose 0.3 per cent to finish at 39,513.97. Australia’s S&P/ASX 200 gained 0.6 per cent to 8,493.70.
SoftBank Group’s stock dipped 1.1 per cent after reports it was in talks to invest in OpenAI, while Nissan Motor’s shares finished 1.4 per cent higher after the Japanese automaker confirmed plans to reduce production in the US.
The Fed’s latest decision could hint at rates staying on hold for a while following their swift drop at the end of 2024. Lower rates would help the economy by making it cheaper for US households and companies to borrow, but the downside is they could also fuel more inflation.
Fed Chair Jerome Powell said the US central bank could cut rates if inflation slows further or if the job market suddenly weakens. But “right now, we don’t see that, and we see things as in a really good place for policy and for the economy, and so we feel like we don’t need to be in a hurry to make any adjustments”.
Earlier in the week, there was disruption driven by doubts about the artificial intelligence (AI) boom, after Chinese upstart, DeepSeek said it developed a more affordable large-language AI model.
