Asia markets fall as Dow hits new closing low; BOJ decision on deck

Asia-Pacific markets fell on Thursday, tracking losses on Wall Street as the Dow Jones industrial average hit a new closing low for the year.

The Federal Reserve held its key policy rate steady at 3.5% to 3.75%, with Chair Jerome Powell watering down expectations of a rate cut, saying inflation was not coming down ‘as much as hoped’.

The producer price index — which tracks changes in wholesale prices — rose 0.7% in February, more than the 0.3% forecast by economists polled by Dow Jones.

Despite that, the US central bank’s “dot plot” still projects a cut in 2026 and another cut in 2027, though the timing is unclear.

The Iran war continues to fuel energy worries. International benchmark Brent crude futures rose 3.83% to settle at $107.38 per barrel.

US oil prices were trading higher, with West Texas Intermediate futures closing slightly higher at $96.32 per barrel.

Investors in Asia will look to the Bank of Japan’s decision, with the bank expected to hold rates at 0.75%.

South Korea Kospi It lost 2.56%, the biggest loser in Asia after being the region’s top gainer on Wednesday, while small-cap Kosdaq saw a smaller loss of 1.73%.

Chip heavyweights Samsung Electronics and SK Hynix lost 3%.

of Japan Nikki 225 was down 2.47%, while the broader-based Topix was down 1.82%.

Australia’s S&P/ASX 200 started the day down 1.5%.

Hong Kong’s Hang Seng index futures were at 25,479, down from the HSI’s last close of 26,025.42.

Overnight in the US, the 30-stock Dow lost 1.63% to end at 46,225.15, a new low this year. The index fell below its 200-day moving average.

The S&P 500 fell 1.36%, while the Nasdaq Composite fell 1.46%.

—CNBC’s Sean Conlon, Pia Singh and Jeff Cox contributed to this report.