Asian stocks set to edge lower ahead of US Fed chair’s policy speech

The Japanese yen weakened against the U.S. dollar, trading around 157.33 per dollar, due to the widening interest rate gap between the U.S. and Japan. The Bank of Japan's recent rate hike, with dovish dissents, contrasted with the Federal Reserve's hawkish stance. Analysts expect USD/JPY to reach 160 by year-end. Markets price in a 30% chance of a BOJ rate hike in October and a 55% chance of a Fed rate hike. Bitcoin rose above $87,000, reaching an eight-month high.

The U.S. Senate failed to pass the CLARITY Act, which would have regulated crypto exchanges and stablecoin issuers. The Federal Reserve raised interest rates to 3.75–4% and continued Treasury bill purchases. Bitcoin's price dipped but remained near $76,000. The House advanced a bill to mandate audits of the government's bitcoin holdings. Revolut disclosed a data breach involving customer passports and bitcoin histories.

JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS) fell 1%, 3%, and 4% respectively after the Fed's rate hike, despite banks typically benefiting from such moves. JPMorgan's CEO warned of potential challenges ahead, including rising deposit costs and increasing card charge-offs. The Fed raised rates to 4% on September 17, 2026, the first hike in three years.

The Federal Reserve raised interest rates to 3.75%-4%, citing high inflation. The hike may impact AI infrastructure builders like Nvidia (NVDA), Oracle (ORCL), and Amazon (AMZN). Nvidia has strong cash flow but faces customer risks. Oracle and Amazon have high capital expenditures and debt, with Oracle's credit rating near junk status. Bank of America forecasts increased debt issuance by hyperscalers.

The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% on September 16, the first hike since 2023. Bitcoin, often seen as sensitive to rate changes, remained near $75,813, showing little reaction. Traders had already priced in a high likelihood of the hike, with significant leveraged bets and ETF outflows occurring before the decision. The Fed signaled potential further tightening, with projections indicating one more hike by year-end 2026.

The Federal Reserve raised rates by 25 bps on Sept. 16, reversing earlier expectations. Brokers and exchanges like Interactive Brokers (IBKR), Robinhood (HOOD), and CME Group (CME) may benefit from rate hikes. IBKR could see a 2% lift in net interest income (NII) per 25 bps hike, while HOOD's outlook depends on trading volume, and CME benefits from rate path uncertainty.