From Nasdaq:

Asia’s struggling stock markets face the impact of Wall Street’s negative response to the U.S. Federal Reserve’s decision to leave interest rates unchanged. The U.S. payrolls report due on Friday will also influence Asian trading. American stock and Treasury yields fell after the Fed’s decision, which disappointed investors expecting a rate cut.

The S&P 500 retreated from record levels following disappointing technology earnings and less than impressive employment data, closing down 1.6% but up 1.6% for the month. Meanwhile, Japan’s stock market appears to be holding steady despite widespread declines in Asia and weakness in China’s markets.

China’s stocks continue to struggle as fourth straight month of shrinking manufacturing activity leads to diminished confidence. Japan’s market tells a different story, however, experiencing its best January performance in over two decades amid signs of economic recovery.

Japan’s Nikkei index concluded January with a gain of over 8%, marking its best January performance since 1998. Confidence in Japan’s recovery is on the rise, supported by last week’s data showing a significant improvement in consumer sentiment. The Bank of Japan’s recent meeting minutes suggest a possible move to increase rates, putting pressure on Japan’s bond yields and the yen.

Key developments expected to impact trading on Thursday include Japan’s PMI, U.S. weekly jobless claims, and U.S. PMI for January. The Federal Reserve’s decision to keep key rates unchanged will continue to influence market direction in the short term.



Read more: MORNING BID ASIA-Fed dashes March cut hopes, market fallout begins