This is CNBC’s live blog covering Asia-Pacific markets.
A pedestrian jogs along the Bund across from buildings in Pudong’s Lujiazui Financial District in Shanghai, China, on Thursday, Jan. 2, 2025.
Asia-Pacific markets traded mixed Thursday as China’s central bank kept interest rates steady, after the U.S. Federal Reserve kept benchmark rates unchanged overnight.
Australia’s S&P/ASX 200 traded 1.02% higher.
South Korea’s Kospi climbed 0.28% while the small-cap Kosdaq rose 0.55%.
Hong Kong’s Hang Seng Index fell 1.36% and mainland China’s CSI 300 dipped 0.17% after China kept its key lending rates unchanged as Beijing juggles propping up growth and stabilizing its currency amid mounting trade frictions.
The People’s Bank of China kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, where they have been since a quarter-percentage-point cut in October.
Japan markets were closed for a holiday.
The Federal Reserve held interest rates steady at 4.25% to 4.5% on Wednesday, while signaling that they anticipate two rate reductions later in the year. Their economic projection also foresaw rising inflation and reduced economic growth.
Fed Chair Jerome Powell also noted that while economists sounded the likelihood of a recession, a severe downturn is not likely. The Fed’s decision comes against a backdrop of festering tensions between the U.S. and its key trade partners.
U.S. stock futures were little changed after the three major averages rallied after the Fed maintained its outlook for two interest rate cuts this year.
Overnight in the U.S., the three major averages closed higher. The S&P 500 clawed back more of the rout since late February that took the benchmark briefly into correction territory. The Dow Jones Industrial Average climbed 383.32 points, or 0.92%, and closed at 41,964.63. The S&P 500 jumped 1.08% to end at 5,675.29, and the Nasdaq Composite advanced 1.41% to settle at 17,750.79.
— CNBC’s Sean Conlon and Pia Singh contributed to this report.
Australia’s employment falls in February
Australian employment dropped in February, with net employment falling by 52,800 jobs in February compared to the month before, data from the Australian Bureau of Statistics showed. The figure is under market expectations of a 30,000 climb.
The jobless rate remained steady at 4.1%.
The Australian dollar weakened 0.25% to trade at $0.634 against the greenback.
—Lee Ying Shan
China’s central bank follows U.S. Fed in keeping rates steady as tariff threats pressure yuan
China kept its key lending rates unchanged on Thursday, as Beijing juggles propping up growth and stabilizing its currency amid mounting trade frictions.
The People’s Bank of China kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, where they have been since a quarter-percentage-point cut in October.
The rate decision follows the U.S. Federal Reserve’s move to hold benchmark interest rates. Fed officials, however, indicated likely half a percentage point of rate cuts through 2025.
Read the full story here.
—Anniek Bao
Toyota subsidiary pleads guilty to emissions fraud
Hino Motors pleaded guilty on Wednesday over an emissions fraud scheme according to the U.S. Justice Department.
The subsidiary of Toyota will face $1.6 billion in penalties and is also expected to pay a fine of $521.76 million. Hino Motors will also serve five years of probation, during which the engine manufacturer will be banned from importing diesel engines it manufactures into the U.S.
Japan markets are closed for a holiday.
—Lee Ying Shan
Weaker growth, higher inflation ‘balance each other out’ in Fed forecast, Powell says
U.S. Federal Reserve Chair Jerome Powell speaks at a press conference, following a two-day meeting of the Federal Open Market Committee on interest rate policy, in Washington, D.C., U.S., March 19, 2025.
Fed Chair Powell said the central bank’s forecasts for less economic growth and higher inflation in 2025 somewhat offset each other, explaining the fact that the forecast for rate cuts this year stayed at two.
“At the December meeting, the median was two cuts. So you come in and you see, broadly speaking, weaker growth but higher inflation. And they kind of balance [each other] out,” he said.
Again, Powell emphasized the forecasts are “highly uncertain.”
— Jesse Pound
Stocks close higher after Fed policy decision
The three major averages finished Wednesday’s session in positive territory after the Federal Reserve decided to leave interest rates unchanged.
The Dow Jones Industrial Average rose 383.32 points, or 0.92%, to close at 41,964.63. The S&P 500 gained 1.08% to finish at 5,675.29, and the Nasdaq Composite jumped 1.41% to finish at 17,750.79.
— Sean Conlon
