Asia-Pacific Markets Rise Following Fed's Third Rate Cut of the Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
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Source: CNBC
Market Reactions: Asia-Pacific markets rose following the Federal Reserve's third rate cut of the year, with Japan's Nikkei 225 and South Korea's Kospi both showing gains.
Federal Reserve Actions: The Fed cut the Federal Funds rate by 25 basis points to 3.5%-3.75% and indicated it may pause further cuts, while also resuming purchases of $40 billion in Treasury bills.
Economic Outlook: Fed Chair Jerome Powell emphasized a focus on economic evolution rather than inflation, noting the weak labor market and the impact of tariffs on inflation.
U.S. Market Performance: Following the Fed's decision, U.S. markets saw significant gains, with the Dow Jones Industrial Average rising 1.1% and the S&P 500 increasing by 0.7%.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
