Mixed Asian Benchmarks as US Appears Steadfast in Maintaining Current Rates

Asian shares were trading mixed on Wednesday as investors reacted to Federal Reserve Chairman Jerome Powell’s comments indicating that U.S. interest rates may remain high for a while.

In Japan, the benchmark Nikkei 225 dipped 0.5%, while Australia’s S&P/ASX 200 edged up slightly. South Korea’s Kospi was little changed, Hong Kong’s Hang Seng slipped, and the Shanghai Composite gained.

Powell’s remarks at an event on Tuesday suggested that the central bank is waiting for more confidence that inflation is heading sustainably down to its 2% target before cutting interest rates. This cautious approach has dampened risk appetite in the markets.

On Wall Street, the S&P 500 and Nasdaq fell, while the Dow Jones Industrial Average rose slightly. Treasury yields rose following Powell’s comments, leading to a sell-off in stocks. Traders are now expecting fewer rate cuts from the Fed this year, with some even betting on no cuts at all.

In other news, Donald Trump’s social-media company saw its stock price slump further after announcing a new service on its Truth Social app. The company’s stock has dropped significantly in recent weeks, reflecting fading investor enthusiasm.

In energy trading, benchmark U.S. crude and Brent crude both fell, while in currency trading, the U.S. dollar inched down against the Japanese yen and the euro.

Overall, the markets are reacting cautiously to the prospect of high interest rates and reduced expectations for rate cuts, with investors closely watching economic data and Fed policy decisions.