SUMMARY Asian shares were mixed on Thursday as hopes for lower US interest rates continued to drive global markets, while U.S. futures slipped. Bitcoin rose to a new record of over $123,000, but the yuan fell against the dollar after US Treasury Secretary Scott Bessent said Japan was "behind the curve" in monetary tightening.
Market Overview The day's trading saw Asian shares exhibiting mixed performance, with some markets experiencing slight declines while others remained relatively stable. The Nikkei 225 index in Tokyo witnessed a fall of 1.3% to 42,705.36 as investors opted to lock in recent gains that had propelled the benchmark to historic records.
Similarly, in Hong Kong, the Hang Seng index shed less than 0.2% to 25,655.26. In contrast, China's Shanghai composite index added a modest 0.1% to 3,686.07. South Korea's Kospi fell marginally to 3,222.99, while Australia's S&P ASX 200 index managed a gain of 0.5% to 8,866.70.
Taiwan's TAIEX meanwhile saw a decline of 0.5%, while India's Sensex eked out an increase of just 0.1%. The Japanese yen rallied against the dollar as Bessent observed in his Bloomberg interview that Japan was "behind the curve" in monetary tightening. This remark sparked fears of tighter policy and sent the yen surging.
Conversely, the pound declined against both the euro and the US dollar. Commentators speculated that lower U.S. interest rates would have a negative impact on the British currency. The euro also lost ground against the dollar, with its value dipping to $1.1703 from $1.1705.
Cryptocurrency Market Bitcoin reached a new peak of over $123,000 this week according to CoinDesk. The surge follows weeks of escalating values for various cryptocurrencies as investors bet on potential benefits resulting from declining U.S. interest rates.
Blockchain and cryptocurrency exchanges continued their climb upwards in response to the optimism surrounding lower interest rates and increasing investor participation in digital currencies. Meanwhile mainstream finance analysts pointed out that a rise in such investments poses significant risks.
Interest Rates Hopes Expectations for lower US interest rates persisted this week as investors reacted positively to rising hopes of an upcoming interest rate cut by the Federal Reserve.
The U.S. Treasury Secretary Scott Bessent's comment has triggered concerns about monetary tightening policies, making currencies like Japanese yen strengthen against other major currencies including US dollar. Lower interest rates should ideally weaken the Japanese yen but its surprise strengthening instead led to mixed reactions among investors.
Market Trends Many are attributing the recent gains in stocks particularly in industries related housing and automobiles as hopes of lower U.S. rates spread throughout international markets.
Bullish shares finished its IPO trading after gaining nearly 84% on opening with stocks like PulteGroup rising 5.4%, Lennar 5.2%. Lower rates may benefit homebuilders due to cheaper mortgages.
Fed's Decision President Trump frequently urges for rate cuts that will "make America great again," according to his own statements, as he expresses hope the U.S. economy faces a downturn soon after the U.S.
President Donald Trump has been pressuring the Fed to cut its benchmark interest rate for political reasons and expressed criticism by making personal attacks on Fed's Chair Jerome Powell.
Data Release Economic projections show US inflation will be above 2% in July, increasing demand for commodities. Experts anticipate another moderate increase of around a quarter point this fall based on expected data release next Thursday that highlights the country's ongoing struggle to slow price growth.
Oil Market In other developments on global energy markets, Brent crude futures rose by almost $0.3 per barrel after reaching near-record levels midweek and U.S.
The US economy has faced pressure as global inflation rises resulting in high interest rates.
CONCLUSION Asian shares exhibited a mixed performance this week amidst rising expectations for lower US interest rates that sent stocks climbing globally but cryptocurrency reached its peak point hitting over 123 thousands.