Japan’s Nikkei Hits Fresh Record as Asia Trades Mixed After Fed Cut

Tokyo – Japan’s benchmark Nikkei 225 surged to a new record high on Thursday, lifted by gains in real estate and technology stocks, as investors across Asia digested the Federal Reserve’s latest rate cut.

The index rose 1.13%, with standout performances from Resonac Holdings, which jumped more than 10%, semiconductor firm Screen Holdings, up 4.3%, and Kirin Holdings, also gaining 4.3%. Japanese chip-related shares extended the rally, with Advantest rising 3.5% and Tokyo Electron up 4.5%. The rally came as the Bank of Japan began its two-day policy meeting, where most economists expect it will keep rates steady. HSBC economists, however, anticipate a potential hike in October, which could bring the policy rate to 0.75%.

Elsewhere in the region, markets showed mixed reactions following the Fed’s decision to cut its benchmark rate by a quarter point while signaling two more reductions later this year. South Korea’s Kospi gained 0.96%, while Australia’s S&P/ASX 200 fell 0.51%. In Sydney, shares of Santos plunged more than 11% after a consortium led by Abu Dhabi’s ADNOC abandoned its $18.7 billion takeover bid. Hong Kong’s Hang Seng Index slipped 0.17% and China’s CSI 300 lost 0.23%.

Asian chipmakers were in focus after reports that China had banned Nvidia’s artificial intelligence chips. South Korea’s SK Hynix jumped 5.5%, Taiwan’s TSMC rose nearly 0.8%, and Samsung Electronics advanced 2%.

U.S. markets ended mixed overnight following the Fed’s move. The Dow Jones Industrial Average climbed 260 points, or 0.6%, to 46,018.32, touching an all-time high earlier in the day. The S&P 500 dipped 0.1% to 6,600.35, while the Nasdaq Composite lost 0.3% to 22,261.33. Analysts noted that while the rate cut was widely expected, uncertainty over the Fed’s longer-term path kept investors cautious.