Fed rate cut, China PMI, South Korea trade

Asia-Pacific markets are set to open mixed on Thursday, after comments from U.S. Federal Reserve Chair Jerome Powell indicated that a rate cut could come in September if inflation data remains “encouraging.”

This comes after the Fed’s Federal Open Market Committee meeting concluded Wednesday, where it opted to hold the federal funds rate at its current level of 5.25% to 5.5%.

Powell cautioned that a rate cut is not guaranteed, though he also seemed to rule out a 50-basis-point reduction.

“I don’t want to be really specific about what we’re going to do, but that’s not something we’re thinking about right now,” he said.

Investors in Asia will also assess business activity data from around the region in addition to the Fed comments, with purchasing managers index data due from China, Japan and South Korea.

Japan’s Nikkei 225 futures pointed to a weaker open for the market after a rally on Wednesday, with the futures contract in Chicago at 38,880 and its counterpart in Osaka at 38,710 compared to the previous close of 39,101.82.

On Wednesday, the Bank of Japan raised its benchmark interest rate to “around 0.25%,” marking its highest level since 2008.

Futures for Australia’s S&P/ASX 200 stood at 8,078, with the index set to retreat from its all-time closing high of 8,092.3 reached on Wednesday.

Hong Kong’s Hang Seng index futures were at 17,377, lower than the HSI’s last close of 17,344.6. The city saw its GDP climb 3.3% year-on-year in the second quarter, beating expectations of a 2.7% rise from economists polled by Reuters.

Overnight in the U.S., stocks rallied after the Federal Reserve kept interest rates unchanged, as expected, while traders also poured back into megacap tech names.

The S&P 500 jumped 1.58% to close at 5,522.30, while the Nasdaq Composite popped 2.64% to 17,599.40. It was the best session since February for both indexes.

The Dow Jones Industrial Average added 99.46 points, or 0.24%.

—CNBC’s Pia Singh, Alex Harring and Samantha Subin contributed to this report.