This is CNBC’s live blog covering Asia-Pacific markets.
Hong Kong’s Hang Seng index led declines in Asia-Pacific markets Thursday, falling over 2%, as investors weighed the U.S. Federal Reserve’s decision to keep interest rates steady, while the ongoing conflict between Israel and Iran continues to dent sentiment.
Meanwhile, mainland China’s CSI 300 was down 0.82%.
Japan’s benchmark Nikkei 225 lost 1.02% to close at 38,488.34, while the Topix declined 0.58% to end the trading day at 2,792.08. South Korea’s Kospi added 0.19% to close at 2,977.74.
Australia’s S&P/ASX 200 ended the day flat at 8,523.7.
U.S. President Donald Trump is convening his national security advisors in the White House Situation Room for the second time in two days, as he weighs a potential military strike on Iran amid its conflict with Israel. The meeting started shortly before 5 p.m. ET on Wednesday, a White House official told NBC News.
The U.S. Federal Reserve expectedly held interest rates steady on Wednesday, leaving its benchmark rate unchanged at 4.25%-4.5%, where it has stood since December. Fed Chair Jerome Powell signaled that the Fed committee will wait to see the impact of President Donald Trump’s tariffs on inflation before considering any adjustments to monetary policies.
However, the Fed still pointed to two rate cuts later this year.
Overnight on Wall Street, the three major averages ended the trading day mixed. The 30-stock Dow lost 44.14 points, or 0.10%, and ended at 42,171.66. The S&P 500 slipped 0.03% to close at 5,980.87, and the Nasdaq Composite inched up 0.13% to settle at 19,546.27.
— CNBC’s Sean Conlon and Lisa Kailai Han contributed to this report.
Vietnamese dong weakens to record low against the dollar
The Vietnamese dong weakened 0.13% to 26,127 against the greenback as of 11.15 a.m. local time, marking a record low.
The move also comes on the back of the strengthening of the U.S. dollar in recent days. The dollar index, which measures the greenback against a basket of currencies, gained 1% since June 17.
Other Southeast Asian currencies also weakened. The Thai baht depreciated as much as 0.6% to 32.845 against the dollar, the lowest since June 2, according to data from LSEG. The Indonesian rupiah fell 0.49% to 16,375 against the dollar.
—Lee Ying Shan
Australia unemployment rate holds steady at 4.1%
Australia’s unemployment rate came in at 4.1% in May, unchanged from the month before and in line with expectations from economists polled by Reuters.
This is the fifth straight month that the unemployment rate has remained steady at 4.1%.
Back in May, Australia’s central bank estimated that the unemployment rate would increase “a little” this year, putting their forecast at “a bit below 4.5%.”
— Lim Hui Jie
Aberdeen Investments shines spotlight on China, South Korea and Europe equity markets
Aberdeen Investments said it favored China and Europe equity markets for their “strong” policy tools that can offset the negative impact from tariffs, following the U.S. Federal Reserve’s decision to keep policy rates steady.
“China’s equity market is also further supported by a multi-pronged equity market program,” said the asset manager’s Ray Sharma-Ong, head of multi-asset investment solutions, Southeast Asia.
Sharma-Ong also highlighted that South Korea’s equity markets present “attractive opportunities” fueled by growth-oriented reforms and improving corporate governance.
—Lee Ying Shan
Nippon Steel shares rise after completing acquisition of U.S. Steel
Shares of Japan’s Nippon Steel rose 1.33% after it completed its acquisition of U.S. Steel.
U.S. President Donald Trump has insisted for weeks that the companies would form a “partnership” in which U.S. Steel would remain American-owned.
U.S. Steel shares stopped trading at 8:30 a.m. ET on Wednesday after Nippon completed its acquisition, according to a notice from the NYSE.
Trump opposed Nippon’s bid to acquire U.S. Steel in the run-up to the 2024 presidential election but he changed his stance after he took office, ordering a new review of the deal in April. Former President Joe Biden had blocked Nippon’s acquisition in January, citing national security concerns.
—Lee Ying Shan, Spencer Kimball
Fed keeps rates unchanged, sees 2 more rate cuts this year
Jerome Powell, chair of the Federal Reserve, during a news conference following a Federal Open Market Committee meeting in Washington, D.C., on June 18, 2025.
The Federal Reserve kept interest rates unchanged on Wednesday, as was expected. However, the central bank kept its outlook for two cuts this year as the threat of stagflation has risen.
“Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate,” the Fed’s policymaking committee said in a note. The Fed also lowered its GDP outlook and increased its inflation forecast.
— Fred Imbert
Gundlach sees gold hitting $4,000
DoubleLine Capital CEO Jeffrey Gundlach said Wednesday that gold could hit $4,000 soon as institutions step up their buying amid heightened geopolitical uncertainty.
“It’s a clear beneficiary of everything that’s been going on. And it’s the one asset class that’s really doing well this year,” Gundlach said on CNBC’s “Closing Bell.” “I think the demand for gold is for real.”
Spot gold traded around $3,392.08 an ounce Wednesday, while U.S. gold futures rose slightly to $3,412.5.
— Yun Li
Stocks close little changed
The three leading indexes finished little changed on Wednesday.
The Dow Jones Industrial Average dropped 44.14 points, or 0.1%, to settle at 42,171.66. The S&P 500 ticked 0.03% lower to end at 5,980.87, while the Nasdaq Composite rose 0.13%, closing at 19,546.27.
— Sean Conlon
