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Asian shares trade mixed after Wall Street rally takes a pause
Federal Reserve Chairman Jerome Powell speaks during a news conference following the Federal Open Market Committee meeting, on Sept 17, at the Federal Reserve Board Building in Washington. (AP)
TOKYO, Sept 24, (AP): Asian shares traded mixed Wednesday following a drop on Wall Street, as Federal Reserve Chair Jerome Powell said stock prices were “fairly highly valued.” Japan’s benchmark Nikkei 225 recouped morning losses and rose 0.3% in afternoon trading to 45,612.77. Australia’s S&P/ASX 200 slipped 0.9% to 8,764.50. South Korea’s Kospi dropped 0.6% to 3,466.50.
Hong Kong’s Hang Seng rose 1.1% to 26,448.64, while the Shanghai Composite gained 0.8% to 3,851.28. U.S. stocks took a pause from their relentless rally, with the S&P 500 dipping 0.6%, the Dow Jones Industrial Average falling 88 points, or 0.2%, and the Nasdaq composite sinking 0.9%. It’s the first pullback for the indexes after the trio set all-time highs in each of the last three days.
Since surging from a bottom in April, the broad U.S. stock market has been facing criticism that it’s shot too high, too fast and become too expensive. Powell said Tuesday that the Fed is stuck in an unusual position because worries about the job market are rising at the same time that inflation has stubbornly remained above its 2% target.
They were his first public remarks since the Fed cut its main interest rate last week for the first time this year. Analysts said his comments reiterated his stance that there is no risk-free path. “Essentially the Fed Chairman confirmed what we already knew, which is that the central bank remains somewhat ‘between a rock and a hard place’ when it comes to managing the risks of rising inflation and falling employment,” said Tim Waterer, chief market analyst at KCM Trade.
Fed officials have penciled in more cuts to rates through the end of this year and into next, but they are remaining wary because lower rates can also give inflation more fuel. An update Friday will show how much prices are rising for US households based on the Fed’s preferred measure of inflation, and economists expect it to show a slight acceleration for last month.
On Wall Street, Nvidia weighed on the market after giving back some of its big gain from the day before, when it announced a partnership with OpenAI to build out data centers. Wall Street’s most influential stock lost 2.8%. Other Big Tech stocks that have been some of the biggest reasons for Wall Street’s run to records gave back some of their big gains.
Amazon fell 3%, and Microsoft slipped 1%. All told, the S&P 500 fell 36.83 points to 6,656.92. The Dow Jones Industrial Average dropped 88.76 to 46,292.78, and the Nasdaq composite sank 215.50 to 22,573.47. In the bond market, Treasury yields ticked lower. The yield on the 10-year Treasury eased to 4.11% from 4.15% late Monday.
Waleed Al-Bahar, Acting Director General of KFAED, and Pakistani Ambassador Dr. Zafar Iqbal after signing the second loan for the Mohmand Dam project.
KUWAIT CITY, Sept 23: In a significant step toward strengthening bilateral cooperation and advancing sustainable infrastructure, the Kuwait Fund for Arab Economic Development (KFAED) on Monday signed a second loan agreement with Pakistan valued at 7.5 million Kuwaiti dinars (approximately USD 24.5 million) to help finance the Mohmand Dam Hydroelectric Project.
The agreement was formally signed by Waleed Al-Bahar, Acting Director General of KFAED, and Dr. Zafar Iqbal, Ambassador of the Islamic Republic of Pakistan to the State of Kuwait, during a ceremony held at the Fund’s headquarters.
This second loan builds upon a previous funding agreement signed in June 2024, marking continued support for one of Pakistan’s key infrastructure undertakings. The Mohmand Dam project is a major initiative aimed at bolstering Pakistan’s water and energy sectors, particularly within the Khyber Pakhtunkhwa province.
In a press statement, KFAED emphasized that the project is designed to promote economic and social development by harnessing available water resources to meet growing electricity demands at a low cost. The dam is also expected to mitigate seasonal flooding, safeguard populated areas, and improve access to water for irrigation and drinking purposes.
Beyond immediate utility, the project is aligned with multiple Sustainable Development Goals (SDGs), including the eradication of poverty and hunger, provision of clean water and sanitation, affordable clean energy, climate action, job creation, and the advancement of infrastructure, innovation, and global partnerships.
KFAED clarified that the new loan has been merged with the previous loan, creating a consolidated loan term of 25 years, which includes a five-year grace period. Repayment will be made in 40 semi-annual installments, commencing after the end of the grace period, with an interest rate of 2 percent per annum, and an additional 0.5 percent annual fee to cover administrative and service costs associated with loan implementation.
This marks the 20th loan KFAED has extended to Pakistan, bringing the total value of loans provided to the country to approximately 137.3 million Kuwaiti dinars (around USD 448.7 million). These loans have supported projects across various sectors, underlining Kuwait’s ongoing commitment to development cooperation with Pakistan.
Indian rupee hits record low of 88.62 against the US dollar.
MUMBAI, Sept 23: The Indian rupee fell to an all-time low on Tuesday, sliding to 88.62 against the U.S. dollar, surpassing the previous record of 88.4550 reached two weeks earlier. The decline came as U.S. visa fee hikes intensified pressure on the currency, compounding an already challenging economic outlook.
The increase in H-1B visa fees could slow the deployment of Indian workers to U.S. clients, potentially impacting the profitability of India’s IT sector. This development may lead foreign investors to reassess their investments in Indian IT companies, resulting in reduced equity flows.
In addition, reduced deployment of Indian workers in the U.S. could lower remittances, further straining dollar inflows into India.
These factors come amid ongoing external pressures, including a 50% tariff imposed by the U.S. on Indian goods — the highest among Asian countries — which is expected to negatively affect Indian exports.
“For the rupee, the pressures have increased in terms of tariffs kicking in at 50% and the recent visa news is incrementally negative for equity flows, especially into the IT sector,” said Dhiraj Nim, FX strategist at ANZ Bank.
The Reserve Bank of India (RBI) appears prepared to allow the rupee to weaken gradually. With inflation projected at around 4–4.5% in fiscal year 2026-27, a modest depreciation is seen as manageable, Nim added.
Bankers noted that the RBI has intervened in the currency markets to support the rupee without defending a specific exchange rate level. These interventions are designed to maintain orderly depreciation and prevent market disruption.
On Tuesday, the central bank likely sold dollars through state-run banks near the 88.50 level to support the rupee before letting it weaken further.
Year-to-date, the rupee has underperformed compared to other Asian currencies, failing to benefit from a recent decline in the U.S. dollar index. Heavy U.S. tariffs on Indian exports and reduced foreign capital inflows have weighed on the currency.
Foreign investors have withdrawn more than $15 billion from Indian equities in 2025, underscoring concerns about the outlook for the rupee and the Indian economy.
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