Asia-Pacific markets open mixed as Fed casts doubt on another rate cut in December

Asia-Pacific markets were mixed on Thursday, after U.S. Federal Reserve Chair Jerome Powell indicated that a rate cut in December was far from a “foregone conclusion.”

The Fed on Wednesday slashed the benchmark federal funds rate by 25 basis points, as expected, to bring it to 3.75%-4%.

In Asia, investors will closely watch a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping — the first in-person meeting between the two leaders in Trump’s second term.

South Korea’s markets will also be in focus after Seoul’s chief policy advisor Kim Yong-beom reportedly released details of the trade deal with Washington.

South Korea will invest $200 billion in the U.S., with an annual cap of $20 billion a year, while the remaining $150 billion of its $350 billion total pledge announced earlier this year will be used for shipbuilding cooperation, according to local media reports.

The Kospi gained 1.37% on open with gains seen in auto and shipbuilding stocks, while the small-cap Kosdaq was down 0.1%.

Japan’s Nikkei 225 dipped marginally below the flatline on open, while the Topix rose 0.1%.

Australia’sS&P/ASX 200 started the day down 0.29%.

Hong Kong’s Hang Seng index was poised to rise as it resumes trading after a holiday holiday. HSI futures were at 26,598, higher than the HSI’s last close of 26,346.14.

Overnight in the U.S., theDow Jones Industrial Averageclosed lower Wednesday after Powell’s remarks, having hit a record high earlier in the session.

The Dow closed down 0.2% at 47,632.00, while theS&P 500ended marginally lower at 6,890.59.

However, theNasdaq Composite gained 0.55% to a fresh record close of 23,958.47, propped up by a rise inNvidia.

—CNBC’s Sean Conlon and Sarah Min contributed to this report.