Asian markets mixed

Asia-Pacific markets were mixed on Thursday following comments from U.S. Federal Reserve Chair Jerome Powell, indicating a potential rate cut in September if inflation trends remain favorable.

Japan’s Nikkei 225 dropped 2.72%, and the Topix fell 3.45%, with real estate stocks and exporters declining due to a stronger yen. The Bank of Japan raised its benchmark interest rate to “around 0.25%,” its highest since 2008, causing the yen to strengthen to 148.61 against the dollar.

Toyota reported a 12.2% revenue increase to 11.84 trillion yen for Q1, with a 16.7% rise in operating income. However, shares dropped 8.29%.

Meanwhile, South Korea’s Kospi gained 0.26%, with exports rising 13.9% year-on-year in July. Hong Kong’s Hang Seng index edged up 0.2%, while mainland China’s CSI 300 saw a marginal decline. China’s manufacturing PMI contracted to 49.8 in July, below expectations of 51.5