Tokyo, Japan – Asia-Pacific markets showed mixed performance on Tuesday, following comments from Federal Reserve Chair Jerome Powell cautioning against interpreting recent rate cuts as a sign of aggressive future moves. Powell emphasized that the Fed is not in a rush to lower rates quickly, predicting only two more cuts this year totaling 50 basis points if the economy continues as expected.
In Japan, traders are closely watching the Bank of Japan’s third quarter Tankan survey, which assesses business optimism among large Japanese companies. The latest data revealed that optimism among large Japanese manufacturers remained steady at +13, in line with expectations. Meanwhile, sentiment among non-manufacturers improved slightly to +34, exceeding forecasts.
Unemployment in Japan also saw positive developments, with the rate dropping to 2.5% in August, down from 2.7% the previous month and lower than economists’ expectations. While some Asian markets, including South Korea, Hong Kong, and mainland China, were closed for a public holiday on Tuesday, Japan’s Nikkei 225 rebounded by 1.07% after a significant fall the previous day.
In Australia, the S&P/ASX 200 experienced a slight decline of 0.47% after reaching an all-time high. Meanwhile, in the U.S., the S&P 500 closed at a record high on Monday, capping off a successful month and quarter with a 0.42% gain. The Dow Jones Industrial Average also achieved a new record, closing with a minor increase, while the Nasdaq Composite advanced by 0.38%.
Overall, market movements in the Asia-Pacific region reflect a cautious approach following Powell’s remarks on future rate cuts. Investors will continue to monitor economic indicators and central bank decisions for further guidance in the coming days.