Stock market today: Asian shares are mixed after Wall Street falls back
ahead of Fed rate decision
[March 19, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Asian shares were mixed Wednesday ahead of a decision on
interest rates by the U.S. Federal Reserve.
U.S. futures edged higher while oil prices declined.
Japan reported that it logged a trade surplus in February, with exports
rising more than 11% as manufacturers rushed to beat rising tariffs
imposed by U.S. President Donald Trump.
The Japanese central bank opted to keep its benchmark rate unchanged, as
expected. The Fed also is expected to hold rates steady.
Japan's benchmark Nikkei 225 edged down 0.3% to finish at 37,751.88
after the central bank decided to keep the benchmark interest rate
unchanged at 0.5%. The U.S. Federal Reserve is also expected to keep
rates steady.
Bank of Japan Gov. Kazuo Ueda reiterated that the Japanese economy is
recovering moderately, though risks remain. He declined comment on
Trump's policies. Ueda said fluctuations in exchange rates and consumer
prices required monitoring.
In currency trading, the U.S. dollar jumped to 149.61 Japanese yen from
149.28 yen. The euro cost $1.0926, down slightly from $1.0944. A cheap
yen erodes Japan's buying power but is a plus for exporters since it
boosts their overseas profits when they are converted into yen.
Hong Kong's Hang Seng added 0.1% to 24,770.21, while the Shanghai
Composite declined 0.1% to 3,426.43.
Australia’s S&P/ASX 200 declined 0.4% to 7,828.30. South Korea’s Kospi
gained 0.6% to 2,628.62.
Much attention will focus Wednesday on forecasts the Fed will publish
after its meeting, showing the outlook for interest rates, inflation and
the economy. For now, traders on Wall Street are largely expecting the
Fed to deliver two or three cuts to rates by the end of 2025.
On Tuesday, the S&P 500 dropped 1.1% to 5,614.66 for its latest swerve
in a scary ride, where it tumbled by 10% from its record and then
rallied for two straight days. The Dow Jones Industrial Average fell
0.6% to 41,581.31, and the Nasdaq composite sank 1.7% to 17,504.12.
Tesla was one of the heaviest weights on the market, falling 5.3%. The
electric-vehicle maker’s stock has been struggling due to declining
sales and worries over anger toward its CEO, Elon Musk, who has been
leading efforts to cut spending by the U.S. government. EV rivals,
meanwhile, continue to chip away at its business. China’s BYD on Monday
announced an ultra-fast charging system that it says is nearly as quick
as a gasoline fill-up.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI) at the foreign exchange dealing room of
the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, March
18, 2025. (AP Photo/Ahn Young-joon)
 Alphabet sank 2.2% after the owner
of Google said it would buy cybersecurity firm Wiz for $32 billion.
It would be the company’s most expensive purchase in its 26-year
history, and it could boost the tech giant’s in-house cloud
computing amid burgeoning artificial-intelligence growth.
The drop for Big Tech continues a trend that’s taken hold in the
market’s recent sell-off: Stocks whose momentum had earlier seemed
unstoppable have since dropped sharply following criticism they had
simply grown too expensive.
Chief among them have been stocks that zoomed higher in the frenzy
around AI technology. Nvidia fell 3.3% as it hosted an event known
as “AI Woodstock.” Super Micro Computer, which makes servers, lost
9.6%. Palantir Technologies, which offers an AI platform for
customers, sank 4%.
They’ve been among the biggest losers as Wall Street retrenches amid
uncertainty about what President Donald Trump’s trade war will do to
the economy. Trump’s rat -a- tat announcements on tariffs and other
policies have created worries that U.S. households and businesses
could hold pull on their spending, which would hurt the economy.
That complicates matters for the Federal Reserve, which is beginning
its latest meeting on interest-rate policy and will make its
announcement on Wednesday.
Virtually everyone expects the Fed to stand pat. Cutting its main
interest rate would make it easier for U.S. businesses and
households to borrow, helping to boost the economy. But lower
interest rates can also push inflation upward, and U.S. consumers
shell-shocked by high prices have already begun bracing for even
higher inflation because of tariffs.
In energy trading, benchmark U.S. crude fell 29 cents to $66.46 a
barrel. Brent crude, the international standard, lost 30 cents to
$70.26 a barrel.
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