Asian markets get ‘breather’ with US Fed’s rate cut pause

[SINGAPORE] The United States (US) Federal Reserve’s decision to hold off on interest rate cuts gives Asian markets “a breather” and more room for certainty, said market observers.

In Singapore, banks and real estate investment trusts (Reits) are expected to be the “biggest winners” of steady interest rates, although other sectors such as shipping and industrials are unlikely to see growth without a big stimulus push.

In the bond market, Singapore’s corporate and sovereign bonds are unlikely to be impacted, said industry observers.

The US Federal Reserve paused interest rate cuts again on Wednesday, with its policymakers voting to hold the US central bank’s key lending rate at between 4.25 per cent and 4.5 per cent.

The US Fed noted an increase in economic uncertainty, as it navigates an economy unnerved by Donald Trump’s stop-start tariff rollout.