Asia Markets Mix as Fed Cutting Rates by 0.50% amid the Fear of Covid-19

Asia stock markets were combined in the morning session on March 4, 2020, following a slump on Wall Street last night as the U.S. Federal Reserve announcing an emergency rate cut of 0.50% in response to the increasing economic risk from coronavirus outbreak.

As of 9:48 local time in Thailand, Nikkei rose 0.28%, SSEC jumped 0.11%, HSI dropped 0.39%, ASX fall 1.45% and Kospi hiked 1.91%.

Last night, Dow Jones closed at 25,917.41, plunged by 2.94%, S&P 500 decreased 2.81% and Nasdaq dripped 2.99%

Traders had already priced in a rate cut of 50 basis points by this month’s policy meeting. Fed Chairman Jerome Powell noted that the central bank was not prepared to use any additional tools to stimulate the economy aside from rate cuts. This may have disappointed some on Wall Street who were expecting something more from the central bank.