Seoul, South Korea – Asia-Pacific markets showed a mixed performance on Thursday following a pause in the Wall Street rally alongside the unexpected interest rate cut by the Bank of Korea. The U.S. personal consumption expenditure price index, known as PCE, grew 2.3% on an annualized basis, surpassing the 2.1% seen in September. Core inflation, which excludes volatile food and energy prices, also saw an uptick, rising to 2.8% in the 12 months through October.
Amidst expectations from economists, the Bank of Korea cut its benchmark interest rate by 25 basis points to 3.0%. Market analysts were forecasting the BOK to maintain its current policy stance after a previous rate cut in October. Following the announcement, South Korea’s Kospi index rose by 0.15%, with the small-cap Kosdaq also climbing by 0.53%.
In other markets, Japan’s Nikkei 225 experienced a slight decline of 0.24% while Australia’s S&P/ASX 200 saw a rise of 0.49%, reaching a new intraday high. Hong Kong’s Hang Seng index decreased by 0.48%, reversing gains from the previous day. Mainland China’s CSI 300 index traded flat.
Overnight in the U.S., major tech companies such as Nvidia and Meta Platforms experienced declines, contributing to the overall market downturn. The S&P 500 ended the day down by 0.38%, halting a seven-day winning streak, while the Nasdaq Composite and the Dow Jones Industrial Average also closed in negative territory.
As the U.S. market closed for the Thanksgiving holiday on Thursday, investors will be closely monitoring global market movements and any potential developments, including further central bank actions or economic indicators.