Informist, Monday, Aug. 25, 2025 Tel +91 (22) 6985-4000

Equity Alert: Asian indices higher in early trade post Fed Powell's speech

MUMBAI--0803 IST--All Asian indices were higher in early trade Monday, taking positive cues from the US market which surged after US Federal Reserve Chair Jerome Powell hinted at a likely interest rate cut at the Fed's September meeting. Indices in Hong Kong lead the the gainers followed by those in China.

Powell in his Jackson Hole Symposium speech hinted at a possible rate cut in the near term, and said the jobs and inflation data will also be taken on board before rate cut decisions. Now, the traders see an 87% chance of a cut in interest rates during the central bank's September meeting, which is way higher than around 70% chance debated earlier.

At 0802 IST, Hong Kong's benchmark Hang Seng was up 1.8%, led by a surge in technological stocks. The index extended gains for the second straight session. China's CSI 300 was up 1.3%. Meanwhile, Japan's Nikkei 225 and Topix were 0.7% and 0.3% higher, respectively, in early trade. Metal and automobile stocks gained traction.

FTSE Singapore Straits Times was marginally higher. Market participants are awaiting Singapore's consumer price index for July. Australia' S&P ASX 200 was also marginally higher.

Following were the levels of key Asian indices at 0802 IST:

(Gopika Balasubramanium)

Equity Alert: US mkt surges on Powell's dovish comments, Dow at record close

MUMBAI--0734 IST--Equity indices in the US closed higher Friday as markets took comfort from US Federal Reserve Chair Jerome Powell's dovish comments during his speech at the Jackson Hole Symposium. Investors showed huge buying interest in US stocks, taking the Dow Jones Industrial Average to an all-time closing high. The S&P 500 gained after five consecutive sessions of losses.

Powell hinted at a near-term interest-rate cut, which could be during the September meeting, but also stressed on the importance of jobs and inflation data, which are due this week. After cutting federal funds rates by 50 basis points during September 2024 and 25 bps in November and December each, the US central bank has held rates steady. Currently, the rate stands at 4.25-4.50%.

Traders now bet on an 87% chance of an interest rate cut during the Fed's September meeting, much higher than the 70% probability before Powell's comments. "Powell did what central bankers do best at Jackson Hole — he kept the door open," Nigel Green, chief executive of deVere Group, was quoted as saying by Reuters. "A cut in September would reassure households and businesses that the central bank is not asleep at the wheel. Delaying only raises the odds of a harder landing."

The Dow Jones Industrial Average ended Friday's session 1.9% lower at 45631.74 points, its highest level since Dec.4, 2024. Meanwhile, S&P 500 closed at 6466.91 points, up 1.5%. The Nasdaq broke a three-day losing run to close 1.9% higher at 21496.535 points. Some sectors such as housing, consumer goods, and utilities rose in anticipation of a near-term interest rate cut.

Following are the closing levels of US indices Friday:

(Gopika Balasubramanium)

US$1 = INR 87.53

End

Edited by Tanima Banerjee

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

NSE: National Stock Exchange

NYSE: New York Stock Exchange

NYMEX: New York Mercantile Exchange

SEBI: Securities and Exchange Board of India

RBI: Reserve Bank of India

Internet links:

Securities and Exchange Board of India - http://www.sebi.gov.in

Bombay Stock Exchange - http://www.bseindia.com

National Stock Exchange of India - http://www.nseindia.com

Directory of Indian government websites - http://goidirectory.nic.in

Indian Ministry of Finance - http://www.finmin.nic.in

Reserve Bank of India - http://rbi.org.in

Controller General of Accounts, Government of India - http://www.cga.nic.in

Government's Press Information Bureau - http://www.pib.nic.in

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.