Powell "puts out the fire" for the expected rate cut. The Japanese yen weakens! Japanese stocks surged more than 2% in response.

After the Federal Reserve announced a 50 basis point interest rate cut, the Japanese stock market rose on Thursday. However, due to Federal Reserve Chairman Powell's subsequent warning not to assume that substantial rate cuts will continue, the yen weakened. Currently, investors are awaiting the Bank of Japan's interest rate decision on Friday. On Thursday, the benchmark Nikkei index rose by 2.2%, reaching its highest intraday level since September 4th. Contributions to the index came mainly from the automotive and electronics exports. The Nikkei 225 index rose by 2.5%. Due to Powell's statement during the press conference after the interest rate decision that there is no rush to ease policy, the yen erased the gains triggered by the Federal Reserve's decision to cut the benchmark interest rate by 50 basis points. The yen against the dollar temporarily rose to 140.45, and as of writing, it was hovering around 143.74. Rina Oshimo, a senior strategist at Okasan Securities, stated: "For the Japanese stock market, it is an ideal outcome that there was a substantial rate cut as expected, but the yen did not appreciate. With the Bank of Japan expected to keep rates unchanged, attention may focus on Governor Kuroda's subsequent statements." Economists expect that the Bank of Japan will maintain its current stance at the end of the two-day meeting on Friday. The Japanese stock market entered a bear market in early August, following the Bank of Japan's announcement of a rate hike, as well as Governor Kuroda's hawkish stance during the press conference, which pushed up the yen.