• Asian markets experienced gains following the U.S. Federal Reserve's third consecutive interest rate cut.
• Fed Chairman Jerome Powell's remarks were less hawkish, signaling a cautious approach to future rate adjustments.
• Silver prices hit a record high as demand surged amid supply constraints.
• Despite positive trading, expectations for aggressive future cuts in 2026 have diminished.
• Most Asian stocks rose, led by markets in Hong Kong, Sydney, and Singapore.

Most Asian markets rallied on Thursday after the U.S. Federal Reserve executed its third consecutive interest rate cut, lowering borrowing costs to their lowest in three years. This move is part of an effort to support a labor market showing persistent weakness, prompting traders to welcome the decision. However, the overall euphoria was dampened by cautious signals from the Fed regarding the pace of future reductions, as Powell indicated that officials might be holding off on further cuts in the near term, according to thejakartapost, indiatimes, and channelnewsasia.

After a positive lead from Wall Street, markets in Hong Kong, Sydney, Seoul, Singapore, Wellington, Manila, and Jakarta reported gains. Conversely, Tokyo, Shanghai, and Taipei experienced declines. The central bank aims to stabilize the labor market while returning inflation towards the target of two percent once the impacts of tariffs are accounted for, as noted by multiple sources. Additionally, concerns over inflation seem to be overshadowed by labor market weaknesses, suggesting a complex economic landscape ahead, according to thejakartapost, indiatimes, and channelnewsasia.

Despite the initial enthusiasm, traders have revised expectations for future monetary policy. Language used in the Fed's recent statement mirrored that of late 2024, leading analysts to predict a slowdown in aggressive cuts, particularly into 2026. The mixed outlook for the labor market and inflation is creating a complex dynamic for traders and policymakers alike, with two dissenting members of the Fed voting against the recent cut, highlighting differing views within the central bank, according to thejakartapost and channelnewsasia.

On the commodities front, silver prices reached new heights, hitting a record of approximately $62.88 owing to robust industrial demand and constraints in supply. This increase comes as silver's price climbed significantly throughout the year, reflecting heightened investor interest amid changing market conditions. Gold prices also experienced fluctuations, reflecting the ongoing uncertainties in the economic landscape, according to indiatimes and channelnewsasia.