Market Volatility in Asia Amid Fed's Rate Speculations

Asian markets face volatility due to weakness in Chinese stocks, despite optimism from the U.S. Federal Reserve's potential rate cuts. Investor sentiment improved as the Fed signaled possible rate reductions, though China's market decline undermined broader gains. Australian and New Zealand data also influenced trading trends.

Asia's equities faced difficulty on Thursday as Chinese markets weakened, sidelining Wall Street's rally momentum. Investor optimism rose with the possibility of two Federal Reserve rate cuts this year, yet Chinese shares dragged the market, reflecting broader challenges in sustaining growth.

The Federal Reserve held rates steady as expected, projecting potential cuts by year's end. Inflation forecasts were adjusted upwards, while economic growth outlook was revised down amidst U.S. tariff tensions. The Fed's Chairman Powell reassured that tariff-driven inflation will be transient, boosting stocks and lowering U.S. Treasury yields and the dollar.

China's market pressure, with key indexes falling, resulted from profit-taking despite previous tech-share rallies. Meanwhile, Australia and New Zealand reported mixed economic data affecting currency values. Oil prices experienced minor increases amid Middle East tensions.

(With inputs from agencies.)