Asia-Pacific markets experienced a decline on Thursday, following the downward trend observed on US Market, where the Dow Jones Industrial Average reached a new closing low for the year. The Federal Reserve maintained its key policy rate in the range of 3.5% to 3.75%, with Chair Jerome Powell tempering expectations for rate cuts, indicating that inflation was not decreasing as significantly as anticipated. The producer price index, which monitors fluctuations in wholesale prices, increased by 0.7% in February, significantly surpassing the 0.3% forecasted by economists.

Nonetheless, the projections from the U.S. central bank’s “dot plot” indicate a potential reduction in 2026 and an additional one in 2027, albeit with uncertain timing. The ongoing conflict in Iran persists in exacerbating concerns regarding energy supply stability. International benchmark Brent crude futures experienced an increase of 6.12%, reaching $113.97 per barrel, whereas West Texas Intermediate futures saw a rise of 1.08%, trading at $97.36 per barrel. Investors in Asia assessed the Bank of Japan’s rate decision, with the bank predictably maintaining rates at 0.75%. South Korea’s Kospi experienced a decline of 2.73%, closing at 5,763.22, thereby concluding a series of three consecutive winning sessions after having been the leading gainer in the region on Wednesday. In contrast, the small-cap Kosdaq recorded a more modest decrease of 1.79%, finishing at 1,143.48. Samsung Electronics and SK Hynix, two prominent players in the semiconductor industry, experienced declines of 3.84% and 4.07% respectively.

The South Korean won temporarily surpassed the 1,500 threshold against the dollar earlier in the session, leading finance minister Koo Yun-cheol to express on Wednesday that authorities maintain a “heightened sense of vigilance toward the foreign exchange market,” as reported. Japan’s Nikkei 225 experienced a decline of 3.38%, settling at 53,372.53, thus leading the losses across Asia. Concurrently, the broad-based Topix fell by 2.91%, reaching 3,609.4. Australia’s S&P/ASX 200 declined by 1.65%, closing at 8,497.8, marking its lowest point since November 2025. In the final hour of trading, Hong Kong’s Hang Seng index experienced a decline of 2.04%, whereas mainland China’s CSI 300 index decreased by 1.61%, settling at 4,583.25.

India’s Nifty 50 experienced a decline of 2.43%, mirroring the BSE Sensex’s drop of 2.2%. Shares of HDFC Bank in India declined 5% Thursday following the resignation of Atanu Chakraborty, its part-time chairman, who raised issues regarding governance and ethical standards within the institution. Overnight in the U.S., the 30-stock Dow experienced a decline of 1.63%, concluding at 46,225.15, marking a new low for the year. The index concluded the trading session beneath its 200-day moving average. The S&P 500 experienced a decline of 1.36%, whereas the Nasdaq Composite saw a decrease of 1.46%.