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

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.