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Asia tech, real estate sectors see immediate gains on first Fed rate cut in four years

But longer-term impact on markets might be muted given uncertainties around the US economy

Navene Elangovan
Goh Ruoxue
Published Thu, Sep 19, 2024 · 12:34 PM — Updated Thu, Sep 19, 2024 · 11:57 PM
    • The move to cut interest rates by half a percentage point reflects the Fed’s “growing confidence” that it can maintain strength in the labour market.
    • The move to cut interest rates by half a percentage point reflects the Fed’s “growing confidence” that it can maintain strength in the labour market. PHOTO: BLOOMBERG

    ASIAN technology, real estate and other interest-sensitive stocks will benefit right away from the US Federal Reserve’s first rate cut in over four years, analysts said.

    However, the longer-term impact of rate cuts on markets might be minimal given uncertainties around the health of the US economy, added analysts.

    The Fed cut interest rates by half of a percentage point, or 50 basis points (bps) on Wednesday (Sep 18), bringing interest rates to within the range of 4.75 to 5 per cent. Policymakers said further cuts are lined up for the end of this year and during the next two years.

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